FXStreet – ECB chief Mario Draghi remains convinced that the Eurozone is in need of additional support from the current monetary policy, said Yann Quelenn, Swissquote market analyst.
He said that the verbal Intervention in the tool, the monetary authorities will remain, against the low use of capital resources in the European economy approach, what is the main obstacle to a fall in Inflation to the ECB target of 2% is box. Currently, the monthly bond be left in place purchases of 60 billion EUR.
With regard to the data, the Inflation of 1.9% in April, fell to 1.5%.
In spite of the fact that it’s already been a while that this conclusion was made, we can certainly say that the massive easing measures have driven Inflation.
Angela Merkel of the negative aspects of the Expansion of the monetary policy is concerned, and begins to believe that the single currency was too weak.
With regard to the currency, so we think that the EUR/USD to go short back to 1.10. We believe, therefore, that it will not take long until the markets are pricing in the economic uncertainties in the Eurozone.
** FXStreet News Editorial, FXStreet**