Frankfurt, Germany - Headquarters of European Central Bank. Image source: ewastudio © 123RF.com
On Friday the European Banking Congress took place in Frankfurt, which was the venue for the inauguration speech of the European Central Bank’s new President – Christine Lagarde.
Lagarde used the opportunity to present her opinions on the current state of the European economy and her vision for future development.
The speech as a whole represents a good indication for what Lagarde considers to be the necessary future monetary policy improvements that are to be implemented next.
The focal points of her statement revolved around the areas in which the Eurozone economy was lagging behind from its main competitors, as well as the aspects which need to be improved.
Lagarde began her statement by outlining the key issues which she saw with the current state of the global economy:
“Ongoing trade tensions and geopolitical uncertainties are contributing to a slowdown in world trade growth, which has more than halved since last year. This has, in turn, depressed global growth to its lowest level since the great financial crisis.”
Afterwards, she stressed the importance for European states to start looking inwards and implement policies boosting internal growth:
“The ECB’s accommodative policy stance has been a key driver of domestic demand during the recovery, and that stance remains in place. As laid out in the ECB’s forward guidance, monetary policy will continue to support the economy and respond to future risks in line with our price stability mandate. And we will continuously monitor the side effects of our policies.”
Overall, the principal theme of her argument rested on urging the importance of working towards having a renewable and sustainable green economy, which is driven by steady investment and technological innovation.
Meanwhile, the EURUSD has expectedly tumbled to 1.10175 towards the end of the week’s trading session.
The bullish ABC correction is now evidently terminated, and the price has continued establishing the double top bearish formation.
The price is currently consolidating around the 23.6 per cent Fibonacci retracement level at 1.10175.
If it manages to successfully break down below that level, the next most likely target level would be the major support at 1.09985.
EURUSD 1D Price Chart. Image source: Trendsharks ©, created with TradingView.com
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