Euro-Dollar Volatility Spikes Ahead of ECB Meeting

The video discusses the Euro Dollar's overnight volatility, highlighting its second-highest level of the year. It explores the impact of the Italian referendum on the ECB's bond buying program and the potential for tapering. The historical context of QE is reviewed, noting past market reactions. Future ECB decisions are considered, especially in light of political risks in Europe, such as upcoming elections and the rise of populism, which could constrain ECB actions.

What was the significance of the overnight volatility in Euro Dollar mentioned in the text?

How did the Italian referendum impact the ECB's bond buying program according to the discussion?

What parallels are drawn between the events of last year and this year regarding the Fed and ECB?

What potential risks does the rise of populism in Europe pose to the ECB's tapering plans?

What is the base case scenario regarding the political risks and their impact on the ECB's decisions?