European Central Bank, in recent
monetary policy meet, has reduced the growth and inflation forecast for 2019
and 2020. The worsening economic outlook is in line with recent macro-economic
data. Interestingly Mario Draghi might be an lone central banker, who is
expected to complete his 8 year term with-out hiking interest rates, ECB
suggested that there would be no interest rate hike in the current year.
ECB has finally revisited its
TLTRO programme to maintain ample liquidity in the system. TLTRO-III will be
available at end of each quarter starting Sep-2019 till March-2021.ECB has also
reiterated that it will continue to reinvest its proceeds from maturing bonds.
The EUR/USD pair, which had been trading in a broad range of 1.1260-1.1550 from the last six months, has given a break-down. Going forward, EUR/USD pair can be sold at CMP 1.1230 levels with a stop of 1.1305 and target of 1.1130 and eventual target of 1.1020
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