Draghi repeats his warning

Note: This section contains information in English only.
Source: Dukascopy Bank SA
"The objective here would not be to defend the current stance, but rather to increase meaningfully the degree of monetary accommodation"
-Mario Draghi, ECB President


The single currency erased its gains that were made on the back of stronger than expected German Ifo business climate as Mario Draghi reiterated his pledge to pull the trigger in case the single currency continue climbing higher. The most traded currency pair pulled back from session highs and hit 1.3824, moving lower 20 pips. The pair is likely to find a support at 1.3785, April 22 low.

The European Central Bank pledged to launch broad-based purchases of assets in case the outlook of future inflationary pressure weakens too much. The central bank's 24-member governing council is unanimous in the decision to use both unconventional and conventional tools of monetary policy to deal effectively with rising risk of a prolonged period of low inflation. Draghi's comments on Thursday mostly echo with the monthly policy statement released on April 3. Inflation hit 0.5% in March, the lowest in more than four years. After that Draghi signalled willingness to use the U.S.-style quantitative easing. Nevertheless, the president can postpone his decision in case inflation report on April 30 will show a rebound in prices, as the recovery takes hold.

Also during the speech Draghi claimed the ECB should publish a written account of its debates. He also mentioned minutes should omit names in order to protect the independence of the central bank's members.
© Dukascopy Bank SA

Actual Topics

Subscribe to "Fundamental Analysis" feed

Subscribe
Aby dowiedzieć się więcej o handlu Forex/CFD na platformie Dukascopy Banku, rynku SWFX oraz innych rzeczy związanych z handlem,
zadzwoń do nas lub poproś o oddzwonienie.
For further information regarding potential cooperation,
please call us or make callback request.
Aby dowiedzieć się więcej o Opcjach Binarnych w Banku Dukascopy / platformach handlowych Forex, SWFX, oraz innych,
zadzwoń do nas lub pozostaw prośbę o oddzwonienie.
Aby dowiedzieć się więcej o handlu Forex/CFD na platformie Dukascopy Banku, rynku SWFX oraz innych rzeczy związanych z handlem,
zadzwoń do nas lub poproś o oddzwonienie.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.