European news today. The decision of the ECB on further financial incentives

Today we are waiting for news from the ECB about the future of the financial incentive program.

 

So far, the EUR remains stable.

The meeting of the ECB will be very interesting, against the backdrop of Draghi’s speech last month, when he announced that there will be tightening of monetary policy. But at the same time, he also said that any changes in the share buyback program will be gradual.

In such a situation, it can be said that the ECB is facing a choice. On the one hand, we see that the target inflation rate has not been reached, one can observe a certain imbalance in the market, and on the other hand, it requires a reduction in financial incentives.

The dollar, in turn, is under pressure due to weak forecasts for an increase in the Fed rate this year.

EUR/USD was trading at position 1.1501, which shows a decline from Wednesday.

The US dollar index rose to 95.02, close to a low of 94.28
Also, it should be noted that doubts arose over Trump’s reforms. As the health care reform was a failure, doubts arose over the tax reform.

Since the Bank of Japan said that inflation risks had fallen and did not change the monetary policy, it became clear that they would not repeat the policies of other banks. Thus, the yen fell against the dollar. Now USD/JPY is trading at 112.28.

Created by Joshua Hayn

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