24 Sep 2013
Flash: No news is good news for Euro - Investec
FXstreet.com (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec comments that the mantra “No news is good news” has proved to be the case in mainland Europe which has resulted in a relatively drama free summer for the euro.
Key Quotes
“In the past few days however the news flow has picked up from Europe, with Angela Merkel’s re-election in Germany, weekend press highlighting the authorities plan to probe European banks ability to repay debt and comments yesterday from Mario Draghi, the head of the European Central Bank.”
“Draghi pledged yesterday to “use any instrument, including another LTRO if needed” in an effort to contain money market rates given the weak credit conditions and slow growth in the Euro area. The LTRO is the euro’s own version of ‘quantitative easing’ and as a result could have a significant influence on the value of the euro.”
“The comments yesterday resulted in a minor sell off, which caused EUR/USD to turn around from the highs back below 1.3500 despite some encouraging PMI survey data for the Eurozone released yesterday morning.”
Key Quotes
“In the past few days however the news flow has picked up from Europe, with Angela Merkel’s re-election in Germany, weekend press highlighting the authorities plan to probe European banks ability to repay debt and comments yesterday from Mario Draghi, the head of the European Central Bank.”
“Draghi pledged yesterday to “use any instrument, including another LTRO if needed” in an effort to contain money market rates given the weak credit conditions and slow growth in the Euro area. The LTRO is the euro’s own version of ‘quantitative easing’ and as a result could have a significant influence on the value of the euro.”
“The comments yesterday resulted in a minor sell off, which caused EUR/USD to turn around from the highs back below 1.3500 despite some encouraging PMI survey data for the Eurozone released yesterday morning.”