The President of the ECB took advantage of a conference to whet the appetite of the market, prompting other European leaders to follow him, as a busy macroeconomic week begins.

In front of hand-picked investors in London, Mario Draghi has, for a moment, repressed ECB orthodoxy, and said: “ECB is ready to do whatever it takes to preserve the Euro”. He added: “And believe me, it will be enough”. Although he said that there would be no third massive long-term refinancing operation (LTRO), long-term rates in Spain and Italy lowered under 7% because the few words of the Italian economist suggested a possible bond buyback in the secondary market.

In the wake of his remarks, Angela Merkel and Francois Hollande said, in a joint statement, to be determined to do everything to protect the eurozone. Jean Claude Juncker, head of the Eurogroup, said that there was "no time to lose" in stabilizing the eurozone. This increases the likelihood of a coordinated action by the ECB and the EFSF in September.

From the American viewpoint, GDP growth for Q2 (+1.5%, its lowest level since Q3 2011) confirms the economy runs out of steam and the White House is revising downward its GDP estimates for 2012 and 2013. On July 31, the Federal Reserve will also begin its monetary policy meeting, which raises QE3 hopes for many operators.

Technically, the last closing price in weekly data was just below the USD 1.2317 medium term support and thus cannot invalidate immediately our bearish scenario. However, caution is up these days with the decision of FED, the ECB conference and the monthly report on U.S. employment. In case of crossover of this key threshold, investors should stay away from the parity.