Currency and the Markets
– On Thursday we had the ECB meeting stating interest rates are to remain unchanged for the European community, as the euro continues to be volatile, and an increase in quantitative easing ensues. The Euro fell from about 1.14 to 1.12, and since the meeting the Euro has continued to drift further down. We have effectively lost about 4 cents in value with the Euro
– Dragi, President of the European Central Bank said – “The house view is that the ECB will announce a 6 month extension to QE at the December 3rd meeting with a deposit rate cut not ruled out.â€
– “Mari Dragi will want to reiterate the dovish message of an ECB “ready, willing and capable†of action. At the same time, the ECB does not want the market pricing a policy outcome that is not justified by what they see as current fundamentals.â€
– We are expecting ECB to print more money, as Euro continues to weaken, and the Dollar strengthen as the US economy continues to grow.
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