The key excerpt from Draghi: The ECB is ready to do its part

Draghi says ECB to possibly reconsider monetary policy

There are no promises in the text of the comments from Draghi. The euro dipped to session lows after the comments hit the wires but it's bounced back.

"The ECB is ready to do its part. As we announced at the end of our last monetary policy meeting in January, the Governing Council will review and possibly reconsider the monetary policy stance in early March. The focus of our deliberations will be twofold. First, we will examine the strength of the pass-through of low imported inflation to domestic wage and price formation and to inflation expectations. This will depend on the size and the persistence of the fall in oil and commodity prices and the incidence of second-round effects on domestic wages and prices. Second, in the light of the recent financial turmoil, we will analyse the state of
transmission of our monetary impulses by the financial system and in particular by banks. If either of these two factors entail downward risks to price stability, we will not hesitate to act."

For me, the first sentence is the key one. Everything after it is conditional but 'the ECB is ready to do its part' is basically a promise to act and undermines the rest of it.

Euro traders are focused on everything after the first sentence. There is nothing new there and the market wants a deposit rate cut in March.