The message that ECB president Mario Draghi sent was very calm and puts faith in temporary factors. Energy and food prices, austerity and also the bank stress tests are all to blame for low inflation, which he doesn’t see as materializing to outfight deflation. However, there is one factor that wasn’t mentioned in the press...

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Here’s an idea: the European Central Bank could fight deflation by printing euros to buy gold from outside the euro-zone, thus  weakening the exchange rate of euro. In turn, exports will become more attractive and import prices will rise, boosting growth and inflation.   Sounds like a crazy idea? It certainly is in the realm...

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The ECB meeting is drawing near and here is a  quick  and short preview from SocGen: Here is their view, courtesy of eFXnews: 1. Deposit rate: current -0.30% SG forecast: -20bp to -0.50% Consensus: -10bp Forecast range: no change to -20bp 2. Asset purchase programme : current €60bn/month until March 2017 (sovereign, ABS, CB) SG...

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EUR/USD  dipped to new lows but also showed hesitation, closing another week in the red. The ECB decision in which new measures are expected, is undoubtedly the big event of the week.  Here is an outlook for  the highlights of this week and an updated technical analysis for EUR/USD. The ECB is warming its engines...

The post EUR/USD Forecast Nov. 30 – Dec. 4 appeared first on Forex Crunch.

EUR/USD  continued trading in range, looking for a new direction. The ECB might provide guidance, with its all important rate decision, among other noteworthy events.  Here is an outlook for  the highlights of this week and an updated technical analysis for EUR/USD. The euro enjoyed safe haven flows amid more worries about China and further...

The post EUR/USD Forecast Jan. 18-22 appeared first on Forex Crunch.

The Bank of Japan did it: they indeed eased by setting an interest rate of -0.1% for excess reserves – following the lead of the ECB. They did leave the QE program unchanged with the monetary base at 80 trillion yen as a target. USD/JPY reacts quite strongly, with a leap of around 300 pips...

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Dovish Draghi dragged down the euro, but what does it mean for the next move? Danske has a not-so-dovish scenario: Here is their view, courtesy of eFXnews: We expect the ECB to cut the deposit rate by an additional 10bp at the meeting in March while continuing with today’s reintroduction of its forward guidance that...

The post ECB To Cut Rates By 10bp In March But EUR/USD appeared first on Forex Crunch.

The European Central Bank meets for the first time in 2016, and it certainly is under a lot of pressure, from various angles. The team at Barclays analyzes: Here is their view, courtesy of eFXnews: We expect the ECB to ease policy further in 2016 as deflationary pressures worsen. However, we think new measures are...

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The initial market reaction to Draghi’s verbal shots was certainly powerful: EUR/USD lost over 200 pips and also uptrend support is history. What’s next? There’s a good chance that more is coming, according to BTMU: Here is their view, courtesy of eFXnews: The euro has declined sharply following today’s ECB monetary policy meeting driven by...

The post ECB Wants A Weaker Euro And Will Likely Get It – BTMU appeared first on Forex Crunch.

After bringing you the preview from Danske and the one from Barclays, here is the preview by Goldman Sachs, Another cut in the deposit rate cannot be ruled out: Here is their view, courtesy of eFXnews: Goldman Sachs expects the ECB to be on hold at its policy meeting on Thursday arguing that the meeting...

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