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7 Mar 2014
Flash: EUR supported by ECB - Societe Generale
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, observed yesterday's inaction by the ECB pushed the EUR higher against rivals.
Key Quotes
"Yesterday was all about the ECB. This is the central bank that raised rates in July 2008 on the grounds inflation was a bit high, when a glance at the sky would have shown them a monstrous storm cloud building."
"So of course I'm not surprised that they neither acted, nor did they give any indication that there is a move coming. All you can say in the defence of this reluctance to tackle pathetically slow growth, disinflation that won't go away and a currency that hurts two-thirds of the Euro Area badly is that the vast bulk of Europe's problems are not due to tight money but to bad governance and poor fiscal policies. That won't stop the Euro Area trotting calmly along an economic path that Japan walked down two decades ago."
Key Quotes
"Yesterday was all about the ECB. This is the central bank that raised rates in July 2008 on the grounds inflation was a bit high, when a glance at the sky would have shown them a monstrous storm cloud building."
"So of course I'm not surprised that they neither acted, nor did they give any indication that there is a move coming. All you can say in the defence of this reluctance to tackle pathetically slow growth, disinflation that won't go away and a currency that hurts two-thirds of the Euro Area badly is that the vast bulk of Europe's problems are not due to tight money but to bad governance and poor fiscal policies. That won't stop the Euro Area trotting calmly along an economic path that Japan walked down two decades ago."