In addition to the expected status quo of the ECB, its President Mario Draghi has endeavoured, when drawing his revelation, to defend both his assessment and the institution’s current roadmap.
The Italian economist has indeed responded to its tractors by ensuring that its ultra-comfortable policy has more positive consequences, particularly in terms of job creation and employment, than significant adverse effects. Despite the endless low inflation, he even described negative rates as “very positive” experience”.
While the press has also revealed deep divisions within the Governing Council, Mario Draghi also insisted that all of the September decisions had been taken unanimously, doubling expectations around a recent potential adjustment under Lagarde.
Anecdotally, the European Central Bank confirmed them this month by leaving its rates unchanged, in particular its negative deposit rate (-0.5%), and by confirming the injection of 20 billion euros per month into the economy on 1 November next and for an indefinite period
As a coincidence in the calendar, the latest PMI indicators had shown, shortly before these announcements, that the contraction in manufacturing activity in the Euro zone, particularly in Germany, had worsened. In the Monetary Union as in Germany, the driving force of the Old Continent, the figures were lacking in the consensus of economists.
Despite a Brexit that “seems” to gradually want to untie itself, Christine Lagarde”” s” s” Christine Lagarde””'s task is to take care of the ECB;it is therefore a difficult announcement, especially if the calls for structural reforms in the States, already initiated by its predecessor, continue to remain unheeded.
Graphically, despite the relative weakness of the greenback, the Euro is therefore struggling to establish itself permanently beyond USD 1.1143, the key level previously mentioned and beyond which the medium-term downward trend would be called into question. As long as prices evolve under this resistance, a return to 1.1035 and then 1.0899 retains all credibility.