ECB Draghi Speaks: Amplified Effect of Trade War - Forex News by FX Leaders

ECB Draghi Speaks: Amplified Effect of Trade War

Posted Wednesday, June 12, 2019 by
Arslan Butt • 1 min read

In his speech, Draghi showed concerns that the European economies may be weaker to a global trade war, especially given their high dependency on foreign trade and a particular focus on single industries, such as car manufacturing.

ECB President Mario Draghi further added, “The effect of tariffs could be amplified, as a large share of goods cross borders multiple times during the production process.”

In addition, the main long-term challenge is moving towards a more balanced growth and financing model, which is more reliant on domestic innovation and on higher investment spending.

So far, the speech was on general but most highlighted topics, shedding no light on the next set of European Central Bank policies.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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