ECB & BDB in the Mix

The Bundesbank getting into the mix and taking points of support for the ECB possible rate decision this June as stated by ECB Mario Draghi have driven the EURUSD lower to the 1.3698 levels. Amazingly true when a possible concerted effort of talking intervention suddenly appears on the newswires. This is just the start as not often do we see that the ECB and the Bundesbank (BDB) is on the same page! Quite surprising at this time :)

As market conditions are simply ripe for such talks taking place at this crucial times. Especially when such comments came in the nick of time when the USD was nearing a critical support nearest to the 78.80 basis point which we have time and again referred to. And currently sweeping the 80.05/10 levels in both directions during the session. Closing prices for the week will play a vital key signal in relation with other reports in the market for the week. Click here to continue

Tug of War 3 - ECB vs. FED or Bundesbank

Is Mario Draghi - the new sheriff in town?

The strong statement by the ECB President-Mario Draghi has placed him to our opinion, "as the new sheriff in town!" The Tug of war between European government policy makers has been dragging on for quite sometime with the unresolved crisis between the other neighboring countries in Europe has had a nibbling effect on the global economy. But for now those statements made have given some relief for the Euro in managing to gain some ground from its initial low price of 1.2041, as compared to the 1.1875 dated last June of 2010 and in November of 2005 were it touched a low at 1.1640. Which we believe that the ECB would not allow such price levels to go any further. 

Although, a weak Euro is as constructive as it can get for manufacturing sector, which is extremely good for Germany and France, as well as Italy for that matter. Especially in these critical times where exports are encouraged to spur-up growth for Italy. Nonetheless, Draghi's have caught a lot of traders and investors by surprise and is subsequently being challenge to show what he really has in store. Meaning, what else would he do with the up coming meetings by both the ECB and the Fed this week.

Please continue.....