Pessimistic Tones From ECB Members Today

The Euro has been climbing in the last several trading days, especially against the USD. But as I mentioned in a previous update, the Euro doesn’t have any reasons to rally because the Eurozone economy is in a very weak spot, particularly manufacturing and the industrial sector, which is spilling into other sectors.

Last week we heard some dovish comments from members of the European Central Bank. Today, we are hearing more such comments:

ECB chief economist, Philip Lane, via La Repubblica

• Current inflation rate is “unsatisfactory”
• Trusts that monetary stimulus will allow inflation to grow
• Sees Eurozone economic recovery in the next year or two
• Economy is growing less than hoped, but does not expect a recession
• We don’t see a recession in the Euro area
• ECB isn’t at limit of monetary policy
• Lower debt cost should be used to cut debt

ECB vice president, Luis de Guindos

• Tiering is partial remedy for impact of negative rates

ECB governing council member, Gabriel Makhlouf

• Seeing protracted weakness in the Eurozone
• Macroeconomic outlook is ‘mixed’
• Endorses call for review of monetary policy strategy

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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