26 Sep 2013
Euro under pressure on ECB signs of Eurozone fragility
FXstreet.com (London) - The euro has come under pressure on renewed signs of Eurozone fragility and by Italian political instability.
Figures released by the European Central Bank indicate that lending to companies and households fell by a record amount throughout the Eurozone last month.
Adjusted for loan sales and securitization, lending fell by 1.5 percent in August.
Loans to the private sector fell by 2 percent compared with August 2012.
The disappointing figures present a further headache to ECB president Mario Draghi. EBC rates are still at ultra low levels. Though the ECB cannot directly boost credit in the private sector, such low ECB rate leave Draghi with few tools at his disposal.
Data released today by the ECB showed that M3 rose to 2.3 percent in August from 2.2 percent in July, in line with expectations.
Italian markets have fallen today on sabre rattling by Silvio Berlusconi (for once figuratively rather than euphemistically). Berlusconi’s supporters have threatened to break up Italy’s coalition government by resigning from parliament if a senate committee votes on October 4 to strip him of his senate seat.
Italian shares have shed 1.7 percent so far.
EUR/USD hit a session low of USD1.3485, before recovering to USD1.3495.
Figures released by the European Central Bank indicate that lending to companies and households fell by a record amount throughout the Eurozone last month.
Adjusted for loan sales and securitization, lending fell by 1.5 percent in August.
Loans to the private sector fell by 2 percent compared with August 2012.
The disappointing figures present a further headache to ECB president Mario Draghi. EBC rates are still at ultra low levels. Though the ECB cannot directly boost credit in the private sector, such low ECB rate leave Draghi with few tools at his disposal.
Data released today by the ECB showed that M3 rose to 2.3 percent in August from 2.2 percent in July, in line with expectations.
Italian markets have fallen today on sabre rattling by Silvio Berlusconi (for once figuratively rather than euphemistically). Berlusconi’s supporters have threatened to break up Italy’s coalition government by resigning from parliament if a senate committee votes on October 4 to strip him of his senate seat.
Italian shares have shed 1.7 percent so far.
EUR/USD hit a session low of USD1.3485, before recovering to USD1.3495.
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