- Today ECB Press Conference – Fundamental Analysis, for September 06, 2012
Today is a very special day for financial markets in general and currency market in particular.
Different monetary policy announcements and the number of jobs in private sector for August provided by ADP, generated movements of some currencies on the market which was quiet until now.
The Bank of England left its benchmark interest rate unchanged at 0.5%, the lowest level, as was planned and also maintained its asset purchase plan without changes.
The pound was barely affected by the news given that they were in line with expectations. But more than this, it is noted the high expectations by the European Central Bank ads.
There are different opinions about if the ECB cuts the rates, which in this case would be at 0.5%, or will try to stimulate the economy. Another think tank suggests that this will not happen.
Of course, a change in the rate will move down the euro immediately, but it will not be enough to get to know the words of its president, Mario Draghi. His conference starts at 8:30 and all investors are waiting impatiently for the as the Bank’s representatives could not visit Jackson Hole conference due to heavy workload.
These events are preceded by somewhat contradictory statements of the leader of Germany, Angela Merkel, who opposes the ECB financial statements (taken for it’s own entity status, which prohibits such action), but finally Germany is about to admit such terms which would save two countries whose fall could mean the demise of the euro on the Earth. As it can be seen, the economic problem exists. Spanish government is seeking a bailout without asking for it officially in order to keep confidence of its constituents. In between, millions of people are losing work.
We do not comment on the details of the ECB interest rate. I only can think of one suggestion: no positions in the market place until stable trends.
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