Delagi, The European Central Bank Governor, Is Not Wrong.

Ray Dalio, founder of the world's largest hedge fund Bridge Company (Bridgewater), said that Delagi, the governor of the European Central Bank, was right, and the wrong traders were the ones who did the wrong thing.

On Thursday, the European Central Bank announced that it would reduce the deposit rate by 10 basis points to -0.3%, but it has disappointed the market by expanding the QE.

As a result, the euro rose more than 3% on the day against the dollar, the biggest gain since March 2009.

Dalio, who manages $154 billion, wrote in a written commentary.

The rise is more related to the subconscious reaction of traders, rather than based on a good analysis of the ECB's decision making.

"

We will continue to take full action to achieve 2%.

"Dalio wrote.

"At all critical juncture, he did the right thing, and because of this, the whole world became better.

Now the whole world should know that we should not let Delagi dim. "

Dalio's comments echoed Delagi's own speech yesterday.

Speaking at the New York economic club, Delagi said that the day before yesterday's move was "not to cater to market expectations."

They are designed to help us achieve (inflation) targets. "

In a commentary issued Friday by Dalio, the company said that because of the expectation that the European Central Bank would take radical easing measures and believe that the euro will fall, many fund managers have established the euro / dollar short positions.

The more the market thinks that Mr Draghi's actions will be inadequate, the more likely the ECB will accelerate action, Dalio wrote.

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In the wake of the surge in stocks overnight, the ECB President Delagi made a speech in New York, in addition to better than expected non farm payrolls.

In this speech, he "pigeon sound" renewed, trying to reverse the previous day less than expected easing measures to the negative impact of the market.

Financial blogger zerohedge pointed out that there was nothing more exciting in the New York economic club's activities than a dialogue between Mervyn King, former governor of the Bank of England and Delagi.

King asked, "is your speech intended today to try to offset some of the market's reflection yesterday?"

Delagi's honest almost barbaric reply shocked all the central bank observers: "no... Okay, it is (" Not really... Well, of course ").

According to Wall Street, the European Central Bank announced that the deposit rate will be reduced by 10 basis points to -0.3% on Thursday. However, the expansion of QE has disappointed the market. It only extended the QE implementation period for six months, expanding the asset purchase target and not increasing the monthly purchase quota as expected by the market.

As a result, investors cut sharply the euro's empty positions, and the euro recorded the biggest increase since 2009.

Meanwhile, the stock market in Europe and the United States has collapsed.

Speaking at the New York Economic Club on Friday, Delagi again "Pigeon": the ECB's monetary policy can be adjusted at any time in the future to push the economy towards its goal.

The ECB's monetary policy tools have not been specifically limited and the scale of the balance sheet is not limited.