The euro bulls are breathing a sigh of relief with the European Central Bank strongly suggesting that it will look for additional ways to ease monetary policy, however this won't happen before 'early next year'.
While the European Central Bank's (ECB) President, Mario Draghi, continues speaking, the main outcome from the press conference is quite positive for the euro bulls. They seem to be in control for now as the pressure over the US dollar increased following Draghi's remarks that the central bank is refraining from additional easing steps for now.
With increased market expectations that the ECB is going to engage in a US style quantitative easing, including government bonds, the central bank's President said that various options for quantitative easing (QE) were discussed but the ECB refrained from announcing new measures today.
However, the door was left open for future easing steps, "Early next year the Governing Council will reassess the monetary stimulus achieved, the expansion of the balance sheet and the outlook for price developments."
ECB Staff Projections Downgraded
The new set of ECB staff projections has been released and the expectations for growth and inflation have both ticked lower. Annual real GDP was forecasted to increase by 0.8% in 2014, 1.0% in 2015 and 1.5% in 2016. They represented substantial downward revisions from the numbers announced in September 2014.
Draghi repeated his usual rhetoric about the lack of commitment by Euro Zone governments for structural reform saying, "Insufficient progress in structural reforms in euro area countries constitutes a key downward risk to the economic outlook."
When it came to inflation forecasts, the ECB's staff forecasted that the Euro Area's annual HICP inflation would drop to 0.5% in 2014, 0.7% in 2015 and 1.3% in 2016.
Euro Rally Unlikely to Hold in the Long Run
While the euro shot higher to 1.2400 after Draghi's remarks, his mention of the central bank purchasing all types of assets were discussed ("except for gold"), resulting in additional Volatility on the currency markets and the realization that the ECB's governing council is merely postponing the inevitable (and looking for legal ways to avoid the prohibition of the direct government monetary financing clause in the ECB's treaty).
Draghi reiterated, "The ECB can't violate the Maastricht treaty, so no monetary financing is possible." He also expressed his views during the Q&A session on other central banks' success rate with unconventional monetary policy measures saying, "Quantitative easing has been successful in the U.S. and the UK, however its impact in Japan has been harder to assess."
Summing up Draghi's remarks, we can conclude that while in the short run the European currency could rebound somewhat, the long-term outlook for the euro doesn't look good provided that the FED manages to start hiking rates next year, while the ECB does everything within its mandate to lead the FX market to a lower euro (despite never admitting it publicly).
While the European Central Bank's (ECB) President, Mario Draghi, continues speaking, the main outcome from the press conference is quite positive for the euro bulls. They seem to be in control for now as the pressure over the US dollar increased following Draghi's remarks that the central bank is refraining from additional easing steps for now.
With increased market expectations that the ECB is going to engage in a US style quantitative easing, including government bonds, the central bank's President said that various options for quantitative easing (QE) were discussed but the ECB refrained from announcing new measures today.
However, the door was left open for future easing steps, "Early next year the Governing Council will reassess the monetary stimulus achieved, the expansion of the balance sheet and the outlook for price developments."
ECB Staff Projections Downgraded
The new set of ECB staff projections has been released and the expectations for growth and inflation have both ticked lower. Annual real GDP was forecasted to increase by 0.8% in 2014, 1.0% in 2015 and 1.5% in 2016. They represented substantial downward revisions from the numbers announced in September 2014.
Draghi repeated his usual rhetoric about the lack of commitment by Euro Zone governments for structural reform saying, "Insufficient progress in structural reforms in euro area countries constitutes a key downward risk to the economic outlook."
When it came to inflation forecasts, the ECB's staff forecasted that the Euro Area's annual HICP inflation would drop to 0.5% in 2014, 0.7% in 2015 and 1.3% in 2016.
Euro Rally Unlikely to Hold in the Long Run
While the euro shot higher to 1.2400 after Draghi's remarks, his mention of the central bank purchasing all types of assets were discussed ("except for gold"), resulting in additional Volatility on the currency markets and the realization that the ECB's governing council is merely postponing the inevitable (and looking for legal ways to avoid the prohibition of the direct government monetary financing clause in the ECB's treaty).
Draghi reiterated, "The ECB can't violate the Maastricht treaty, so no monetary financing is possible." He also expressed his views during the Q&A session on other central banks' success rate with unconventional monetary policy measures saying, "Quantitative easing has been successful in the U.S. and the UK, however its impact in Japan has been harder to assess."
Summing up Draghi's remarks, we can conclude that while in the short run the European currency could rebound somewhat, the long-term outlook for the euro doesn't look good provided that the FED manages to start hiking rates next year, while the ECB does everything within its mandate to lead the FX market to a lower euro (despite never admitting it publicly).
Devexperts Checks Off Type 2 SOC 2 Audit for Enhanced Data Security
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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