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11 Dec 2013
Flash: EUR strengthens on ECB message - BTMU
FXstreet.com (London) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ notes that the euro continues to strengthen modestly following the lack of a clear signal from the ECB that further monetary easing will soon be forthcoming while liquidity conditions continue to tighten.
Key Quotes:
“ECB Executive Board member Coeure stated yesterday that the ECB sees no need to deploy “spectacular” measures such as large-scale asset purchases given its outlook for a gradual acceleration in consumer prices.
“However, he reiterated that “we have to be alert and ready to act if needed, and that’s when we consider all instruments which including large scale asset purchases”. He also noted that the ECB would consider offering more long-term loans to banks but only when they are in a position to lend to companies and households rather than utilising the funds to invest in assets such as government bonds.”
“Euro-zone finance minsters have also made significant steps towards the formation of a banking union in a further positive development for the euro and euro-zone financial stability. The draft compromise agreement proposes establishing a common funding network and central bank resolution authority.”
Key Quotes:
“ECB Executive Board member Coeure stated yesterday that the ECB sees no need to deploy “spectacular” measures such as large-scale asset purchases given its outlook for a gradual acceleration in consumer prices.
“However, he reiterated that “we have to be alert and ready to act if needed, and that’s when we consider all instruments which including large scale asset purchases”. He also noted that the ECB would consider offering more long-term loans to banks but only when they are in a position to lend to companies and households rather than utilising the funds to invest in assets such as government bonds.”
“Euro-zone finance minsters have also made significant steps towards the formation of a banking union in a further positive development for the euro and euro-zone financial stability. The draft compromise agreement proposes establishing a common funding network and central bank resolution authority.”