Draghi seen having done enough for economy, euro

Edinburgh

AFTER European Central Bank (ECB) president Mario Draghi extended monetary stimulus, strategists have come to the conclusion he's done enough to revive the economy with policies that helped push the euro down about 10 per cent versus the dollar this year.

Analysts at HSBC Holdings plc, Banco Santander SA and National Australia Bank Ltd predict muted declines or even gains in the shared currency versus the dollar in 2016. The median forecast in a Bloomberg survey is for a drop of about 4 per cent.

A combination of ECB quantitative easing and higher Federal Reserve interest rates will help the single currency hold onto its declines, the strategists say, while the latest data on jobs, manufacturing and inflation shows the weaker e…