Mario Draghi highlighted that ECB's monetary policy conditions have decoupled from the US with the introduction of the negative deposit rate and dropped the bomb saying fundamentals for a weaker Euro are present.
Few people expected an eventful press conference by the European Central Bank (ECB) this past month, however President Mario Draghi thought differently. In a very persistent, or even insistent way he outlined on numerous occasions during the hour-long event, that the conditions on the foreign exchange market have changed for good.
Mr. Draghi stated that the ECB has decoupled its monetary conditions with the United States with the introduction of the negative deposit rate, and the divergence is here to stay for a while.
While the short-term flows of the euro to the US dollar did not immedeately react to his speech materially with daily ranges holding as of writing, the President of the ECB highlighted,"Fundamentals for a weaker exchange rate are now much better than two-three months ago." This is a point previously touched upon by Forex Magnates, and we have seen the euro declining ever since, after the infamous mention by Mr. Draghi of negative interest rates.
In his Q&A session, the President of the ECB mentioned, "Markets have perceived that the monetary policies of the United States, the United Kingdom and the Euro Zone are going to stay divergent for a long time," highlighting that the easing effort will last "much longer time in Europe than in the rest of major economies."
So far we have seen the euro declining rather slowly in tandem with the whole market, however another point mentioned by Mr. Draghi could come to the front and change that - geopolitical risks. He stated, “Heightened geopolitical risks and risks surrounding emerging markets economies,” could result in weaker global demand for European products and ongoing weaker domestic demand due to balance sheet adjustments in the private and public sectors can create additional downside risks.
While for now the euro has lost only about 4 cents to the US dollar since the first mention of negative deposit rates by the ECB, going forward volatility will be mostly dependent on additional market jitters. Mr. Draghi mentioned that a sanction-counter-sanction duel which is forming between the EU and Russia is a situation which could in the end require additional monetary policy measures, bearing in mind that the risks to energy price developments are also a component of current global geopolitical issues.
Mr. Draghi has clearly and repeatedly communicated to the market that the ECB desires a weaker exchnage rate of the euro. The single currency's strength has been dampening economic activity in countries which have not engaged in sufficient structural reform and the central bank continues to aim to take pressure off governments. The only question is how far will the euro go this time around and how fast?
Few people expected an eventful press conference by the European Central Bank (ECB) this past month, however President Mario Draghi thought differently. In a very persistent, or even insistent way he outlined on numerous occasions during the hour-long event, that the conditions on the foreign exchange market have changed for good.
Mr. Draghi stated that the ECB has decoupled its monetary conditions with the United States with the introduction of the negative deposit rate, and the divergence is here to stay for a while.
While the short-term flows of the euro to the US dollar did not immedeately react to his speech materially with daily ranges holding as of writing, the President of the ECB highlighted,"Fundamentals for a weaker exchange rate are now much better than two-three months ago." This is a point previously touched upon by Forex Magnates, and we have seen the euro declining ever since, after the infamous mention by Mr. Draghi of negative interest rates.
In his Q&A session, the President of the ECB mentioned, "Markets have perceived that the monetary policies of the United States, the United Kingdom and the Euro Zone are going to stay divergent for a long time," highlighting that the easing effort will last "much longer time in Europe than in the rest of major economies."
So far we have seen the euro declining rather slowly in tandem with the whole market, however another point mentioned by Mr. Draghi could come to the front and change that - geopolitical risks. He stated, “Heightened geopolitical risks and risks surrounding emerging markets economies,” could result in weaker global demand for European products and ongoing weaker domestic demand due to balance sheet adjustments in the private and public sectors can create additional downside risks.
While for now the euro has lost only about 4 cents to the US dollar since the first mention of negative deposit rates by the ECB, going forward volatility will be mostly dependent on additional market jitters. Mr. Draghi mentioned that a sanction-counter-sanction duel which is forming between the EU and Russia is a situation which could in the end require additional monetary policy measures, bearing in mind that the risks to energy price developments are also a component of current global geopolitical issues.
Mr. Draghi has clearly and repeatedly communicated to the market that the ECB desires a weaker exchnage rate of the euro. The single currency's strength has been dampening economic activity in countries which have not engaged in sufficient structural reform and the central bank continues to aim to take pressure off governments. The only question is how far will the euro go this time around and how fast?
AvaTrade Jumps into Futures Trading with the Launch of a New Platform
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
📣 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!
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/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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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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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
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:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
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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.
📣 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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