28 May 2014
All eyes on the ECB - Investec
FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec, underlines the relevance of the next ECB meeting.
Key Quotes
"In a quiet trading day yesterday, comments from the Eurozone dominated proceedings for the most part. ECB'S Nowotny got the ball rolling yesterday morning, saying that interest rates are to stay lower for a longer period – nothing new there, and that there is a discussion about lowering rates – again nothing new."
"He went on to say the council will discuss which measures can be taken at next week’s meeting and EURUSD drifted lower, to trade in the low 1.3630s. German Finance Minister Schaeuble then spoke and was slightly more hawkish saying the European recovery needs to strengthen, the bloc is not out of the woods, and more importantly - he rejected claims that the ‘Euro is too strong’."
"To complete a hat-trick of comments from the EU, ECB President Draghi said the ECB has the tools needed to get inflation to target and the ECB will do everything feasible within their mandate. Could he be more transparent ahead of next week’s key policy meeting? With a targeted LTRO and a refi rate cut looking almost certain, the question remains around the use of negative deposit rates or other extraordinary measures."
Key Quotes
"In a quiet trading day yesterday, comments from the Eurozone dominated proceedings for the most part. ECB'S Nowotny got the ball rolling yesterday morning, saying that interest rates are to stay lower for a longer period – nothing new there, and that there is a discussion about lowering rates – again nothing new."
"He went on to say the council will discuss which measures can be taken at next week’s meeting and EURUSD drifted lower, to trade in the low 1.3630s. German Finance Minister Schaeuble then spoke and was slightly more hawkish saying the European recovery needs to strengthen, the bloc is not out of the woods, and more importantly - he rejected claims that the ‘Euro is too strong’."
"To complete a hat-trick of comments from the EU, ECB President Draghi said the ECB has the tools needed to get inflation to target and the ECB will do everything feasible within their mandate. Could he be more transparent ahead of next week’s key policy meeting? With a targeted LTRO and a refi rate cut looking almost certain, the question remains around the use of negative deposit rates or other extraordinary measures."