Euro Shorts Scurried When ECB Declared It Was Ready To Do ‘What Ever It Takes’

Being short the euro was a popular position recently. In addition, being short Spanish and Italian debt and long treasuries  and Bunds was the way to go.
That was then, this is now.
The European Central Bank’s mandate allows it to fight excessive borrowing costs for eurozone countries, Mario Draghi, its president, said last Thursday.
He went on to say the ECB was “ready to do whatever it takes” to preserve the single currency.
The euro strengthened and the bond prices of debt issued by stressed eurozone countries rallied after Mr Draghi warned … "Believe me, [my actions] will be enough [to hurt the shorts]."
Here is link to the comments that sent shorts scurrying.

While traders know not to fight the Fed … there are not many “bullets in Draghi’s gun”.  Of course, threatening to do something major was one of them. He just used it. If there is no follow-through, his credibility drops and there will be ramifications.
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