Verbal intervention knocked the euro
Euro responded to the words of a former member of the Board of the ECB LB Smaghi, who expressed concern about the strong euro. According to him, the ECB should find ways to prevent the appreciation of the euro. It is clear that in a situation other necessary fiscal consolidation (not only) in the peripheral eurozone tion will be this year and probably next year as domestic demand subdued monetary union. Eurozone must rely on the help economic growth in the U.S. and the Asian region.From this perspective, therefore, any strengthening of the euro, of course, undesirable. In favor of softer monetary conditions and reduced interest rates in the event of the need to promote the upcoming economic indicators expressed by the head of the German Bundesbank J. Weidman. The dollar then helped the U.S. published "beige" book, where central bankers judged economic expansion as a moderate when signs of improvement in the industry, the real estate market and the automotive sector.
Yesterday too interesting to fresh figures was, in retrospect, at least on the European side will be no different. The euro area is basically confess any interesting economic indicators. On the other side of the Atlantic it will be better after all.In the afternoon, will be published weekly statistics on the number of new applicants for unemployment benefits. Result safely under 400000 in combination with the expected growth in March leading indicators and the possible improvement of the Philadelphia Fed index could make U.S. currency support, and thus prevent the stronger euro. On the economic policy front, we observe today beginning a two-day meeting of finance ministers and central bankers of the G20, which takes place the weekend before the meeting of the International Monetary Fund and the World Bank.
Author: Jan Vejmělek
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