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 EUR/USD is currently in a strong sideways phase. The range is between 1.1273 and 1.1307. Traders are eagerly awaiting the breakout, but if there is no volatility in the market, it is very difficult […]
The euro is currently falling sharply against the US dollar from 1.1232 to 1.1207. The reason for this is recent news that the ECB is allegedly considering revising its inflation target (previously “2% or close […]
The ECB decision has just been announced. The ECB interest rate (refinancing rate) remains unchanged at 0.00%. The extremely important bank deposit rate on remains unchanged at -0.40%. The marginal lending facility also remains unchanged […]