26 Mar 2014
EUR supported after Central Banker commentary - Danske Bank
FXStreet (Barcelona) - Sverre Holbek, Senior Analyst at Danske Bank comments that the euro gained support last night following two relatively hawkish speeches from Draghi and Bundesbank President Weidmann.
Key Quotes
“First of all, Draghi toned down the outlook for further easing by saying that he sees evidence that monetary policy is becoming more effective and that its accommodative stance will support a gradual closing of the output gap.”
“Later Weidmann said that the current euro exchange rate does not call for monetary policy action. Hence, it does look like the ECB is likely to play its usual ‘wait and see’ game when it comes to further monetary easing. This is actually one of the main factors behind our 3M call for a higher EUR/USD towards 1.42.”
Key Quotes
“First of all, Draghi toned down the outlook for further easing by saying that he sees evidence that monetary policy is becoming more effective and that its accommodative stance will support a gradual closing of the output gap.”
“Later Weidmann said that the current euro exchange rate does not call for monetary policy action. Hence, it does look like the ECB is likely to play its usual ‘wait and see’ game when it comes to further monetary easing. This is actually one of the main factors behind our 3M call for a higher EUR/USD towards 1.42.”