ECB's Visco says euro's strength is a worry
|In this week's The Chart of the Week, once again the euro is the focus and the downside is the ultimate trajectory for it as forecasted in the analysis.
The latest news to start the week rhymes with the technicals and quotes ECB policymaker Ignazio Visco saying on Sunday:
The euro’s recent strengthening is worrying us because it generates further downward pressures on prices at a time when inflation is already low,
Visco, Italy’s central bank governor, told an event in Trento, as reported by Reuters news.
The monetary policy implications are obvious: if the downward pressures jeopardise our price stability objective, we’ll have to intervene,
is a line that should give the bears some fuel in the pursuit of the support structures outlined in the technical analysis illustrated in The Chart of the Week.
If, however, opposite effects were to emerge, the measures we’ve already taken could suffice,
Visco added.
The euro has opened on the offer to a low of 1.1622 so far.
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.