The EUR/USD has made a strong surge this Tuesday and is fast approaching a new resistance at 1.225. According to analysts at Deutsche Bank, there is a high potential of the pair hitting the 1.25 mark by September. What is the bank hinging its projections on? Firstly, the bank expects […]
On this page, you will read about everything you need to know about the European Central Bank (ECB) including its latest monetary policy decisions and market-moving speeches.
The European Central Bank (ECB) is the monetary authority in charge of money supply and price stability in the European Union. ECB was founded in June 1998 and headquartered in Frankfurt, Germany. The European Central Bank has, the right to authorize the issuance of euro banknotes. Member countries can issue euro coins, but the amount must be approved by the ECB.
The ECB’s Mission
The main objective of the European Central Bank is to maintain price stability: safeguarding the value of the euro (EUR). The ECB and national central banks together constitute the Eurosystem, the central banking system of the euro area.
The ECB is responsible for the supervision of the banking institutions in the euro area countries and in participating non-euro area Member States. The ECB contributes to the safety and soundness of the EU banking system and the stability of the financial system within the EU and each participating Member State.
In pursuing the maintenance of price stability, the ECB and Eurosystem will undertake the necessary economic and monetary analyses and adopt and implement appropriate policies. It will also properly and effectively respond to monetary and financial developments.
ECB’s monetary policy
The European Central Bank has defined price stability as a year-on-year increase in the Harmonised Index of Consumer Prices (HICP) for the euro area of below 2 percent. In achieving the target of price stability, the ECB aims at maintaining inflation rates below, but close to, 2% over the medium term.
Who Heads the ECB?
The European Central Bank’s President is Christine Lagarde and the Vice-President is Luis de Guindos. Christine Lagarde is the former Managing Director of the International Monetary Fund (IMF), and replaced Mario Draghi as President. The decision-making body of ECB is the Governing Council, which consists of the six members of the Executive Board plus the governors of the central banks of the 19 euro area countries.
The EUR/USD pair peaked briefly at the 1.20695 price level this Thursday after the European Central Bank left its key interest rates unchanged as widely expected. This momentum was quickly lost after the ECB Chair Christine Lagarde made some dovish remarks in her press conference following the ECB’s decision. While […]
The EUR/USD could yet take a greater hit if the outlook provided by analysts at Capital Economics is anything to go by. Capital Economics believes that the present rebound in the pair is short-lived, and would give way to a further decline later in the year. The backbone of this […]
Weakening demand for the US Dollar on the day has put the EUR/USD in good stead to stage a 3rd day of gains, just as the ECB Chair Christine Lagarde is set to deliver her speech following the ECB’s interest rate decision. The ECB has left the key refinancing rates […]
As the Norwegian Krone waits for possible action from the Norges Bank, it is receiving a strong push from rising crude oil prices. This presents an opportunity to trade a currency pair which at the moment, presents divergent fundamentals. The EUR/NOK is in a short-term downtrend, as the weakening Euro […]
Some aspects of the latest CFTC Positioning Report for the week ended March 2, 2021 are presented below. Emphasis is on the Euro, which is facing tough times at the moment. The CFTC report indicates that the speculative net longs on the Euro continue to dwindle. Speculators added to their […]
The EUR/USD is down sharply, with losses accelerating in the New York session as the European Central Bank’s policymaker Yannis Stournaras has called on the ECB to accelerate the purchases made within the scope of the bank’s Pandemic Emergency Purchase Programme (PEPP). According to Reuters, Stournaras says that there is […]
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The EURGBP pair could be an interesting one to trade this Thursday when central bankers meet via satellite on the ECB Forum on Central Banking. This online event, which began today, will end tomorrow with comments from the heads of the ECB, BoE and Federal Reserve. The key event will...
The latest consignment of the Commitment of Traders report, otherwise known as the CFTC Positioning Report, indicates that speculators have reduced their net long positions on the Euro to levels that were last seen in late July. This is in tandem with the rising coronavirus cases across Europe and the […]