“We sent a strong message of confidence,”European Central Bank (ECB) Governing Council member Francois Villeroy de Galhau said on Friday.
Additional quotes
“Our priority is to fight inflation.”
“French and European banks are ‘very solid’.”
“European banks are not in the same situation as the US banks.”
Market reaction
The Euro remains on the front foot, as EUR/USD is extending its recovery to near 1.0665, at the time of writing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Read More
The European Central Bank (ECB) Executive Board Member Francois Villeroy de Galhau recently declared that the ECB had “sent a strong message of confidence” with its recently concluded monetary policy meeting.
At the meeting, the ECB leader embraced additional stimulus and forward guidance rather than an increase in the interest rate. This move highlighted the commitment of the bank to counter the downward pressure on the euro zone economy that is being caused by factors such as Brexit and the US-China trade dispute.
In the statement released by the ECB after the meeting, Villeroy told reporters that “The Governing Council is determined, in the present circumstances, to act in a determined and timely manner using all the instruments available,” in order to ensure price stability within the euro area.
The statement went on to detail that, in addition to reaffirming their commitment to use all tools necessary to meet their price stability target, the ECB will restart net purchases of public and private sector securities in the coming week, amounting to a total of €20 billion a month.
The ECB also pushed back its outlook on the euro area, citing that it now believes that the economic slack rate is likely to fall short of the previously forecast level due to the uncertain external environment.
In responding to the question of how the ECB’s decision would affect the euro, Villeroy responded that the bank is “confident in the euro area’s resilience and our ability to respond accordingly.”
The confidence of the ECB in the euro area’s future despite external pushes has been well-received as investors are finding comfort in the matters.
Overall, the ECB has sent a strong message of confidence to Europe’s businesses and investors with their policies and commitments. Investors are now looking forward to seeing how the ECB’s moves will help to protect the euro zone’s economy in the coming months.
