Yesterday Draghi tried a big bluff for the last time in his tenure: allegedly endless QE until inflation reaches just below 2%. But at the same time the ECB can continue with its QE for a maximum of nine months (then the potential is exhausted. It can buy a maximum of 33% of a bond maturity and Draghi himself has admitted that this upper limit cannot be discussed). As we see today, the ECB is achieving the opposite of what it wants. It is pushing down bond yields and thus inflation expectations. What it actually wants to push up. The currency market seems to have seen through the bluff, or why else can the Euro rise significantly after an initial fall?
The current development of the Euro against the US Dollar is proceeding according to plan. After the sharp rise in recent times, which was mainly due to fundamental factors, the European currency is currently undergoing […]
AUDUSD has been in a strong downtrend for some time now. Last week we took a close look at the Aussie and analyzed the situation. Since then, the downward movement has continued and the price […]
As we wrote in our analysis yesterday about the Euro versus the US Dollar, the Euro was clearly in overbought territory, so a correction was to be expected. This was also the case in yesterday’s […]