nsucurrent.com May 21, 2018

European Central Bank leaves interest rates unchanged for now

28 January 2018, 12:34 | Ruby West

Surprise Uptick in UK Earnings Dents Euro to Pound (EUR/GBP) Exchange Rate

European Government Bonds: Too Early For The ECB To Announce A Change In Guidance

His task was made even more delicate overnight when top US officials made their case for a weak dollar, sending the greenback to a three year low against the euro and raising fears of renewed trade wars. "US Treasury Secretary Mnuchin's latest comments clearly signalled a shift in the US forex policy, reinforcing negative dollar sentiment", he told AFP.

"In other words, he said very little really, but he said it under snow-plastered slopes and he was speaking to a market where dollar bulls have been under the cosh". The higher euro can become a headache for Europe as it can hurt its exporters and weigh on inflation, which is already worryingly low.

His comments were optimistic and this helped to underpin the the single currency, lifting the Key EUR/USD exchange rate to above 1.25.

The interest rates were left unchanged by the European Central Bank, while net monthly asset purchases were maintained at euro 30 billion until "the end of September 2018, or beyond, if necessary".

"The ECB refrained from aggressively pushing back against the strength of the euro at their monetary policy decision.but also warned the USA against opening a Pandora's box of competitive devaluation", said William Adams, senior global economist at the PNC Financial Services Group.

And, with European Central Bank president Mario Draghi having a fine line to tread amid an expanding economy and stronger euro, his statement and the Q&A session which will follow it, are widely anticipated by investors and market watchers.

This week's bank meeting, he said, did not discuss tapering bond purchases.

There is growing expectation that the program for quantitative easing will end after September.

He spoke after the European Central Bank left its massive financial stimulus for the eurozone economy in place, opting not to rock the boat after Mnuchin's comments.

"The euro's strong performance at the start of 2018 has been aided by upbeat" economic data, said Stamenkovic at NFS Macro.

The bank left its key short-term interest rate benchmark unchanged at a record low of zero.

Part of his holding pattern approach, Draghi also kept the bank's guidance unchanged, maintaining a promise to continue asset buys until a sustained rebound in inflation, even after policymakers agreed in December to begin work in early 2018 to draft a new guidance.

Other News

Trending Now

House releases transcript of interview tied to Trump dossier
He said he was not aware of Steele paying any of his sources, while defending his methods of gathering information. In 2016, Steele later handed over his findings included in the dossier to the Federal Bureau of Investigation .

YouTube tightens monetisation rules, making it tougher for smaller channels to earn
YouTube says this verification process will be completed by mid-February in the USA and end of March for the rest of the world. Human vetting for Google Preferred would start by mid-February in the USA and will expand globally by the end of March.

Senate vote scheduled for Monday to potentially end shutdown
According to media reports, senators will vote to end the shutdown with a short-term spending bill that would last three weeks. January 20 after senators ― most of the Democratic caucus and four Republicans ― blocked a four-week continuing resolution.

Japanese crypto exchange says US$400 million in NEM currency lost
Coincheck said that around 523 million of the trade's NEM coins were sent to another record around 3 a.m. nearby time (1 p.m. At 12:38 PM local time, the exchange halted all purchases of NEM, a token on a distributed blockchain of the same name.

Suspect arrested in killing of 7-year-old
Sharif said the suspect's DNA was tested and presented a 100 percent match with evidence found at the scene. Zainab Ansari was found dead in a rubbish dump on January 9 in Kasur, several days after her disappearance.

Spain rules out Puigdemont becoming Catalonia leader again
As Spain's legal system wrestled over arresting Puigdemont, the ousted leader's name was put forward as a candidate for president. Brussels authorities would have sent Puigdemont to Spain on charges of misuse of public funds, but not on charges of rebellion.

South Africa's ANC debating Zuma's exit, no date agreed
The end to the USA government shutdown implied a shift to risk-on trade, said Rand Merchant Bank currency strategist John Cairns. Zuma could be removed through a motion of no confidence in parliament or by the ANC's National Executive Committee.

Thome is first Knight to make Baseball HOF
A fast runner in his early years, with an overpowering right field arm, Guerrero could hit almost any pitch in any location. As for the other inductees, they are all worthy, Vladimir Guerrero averaged 30+ homers with a.318 average over his career.

Michigan State trustees apologize to abused women in public meeting
Board member Joel Ferguson apologized this week for saying previously that some victims were ambulance chasers seeking a payday. In a Twitter post Friday, university trustee Mitch Lyons expressed regret that the school had failed to respond appropriately.

Rory McIlroy leads the plaudits to Abu Dhabi champion Tommy Fleetwood
I really wanted to win this. "Last year, I had the year of my life by a long, long way on the course. Its a weird feeling coming to defend a trophy because its yours and you dont want to give it away".