The President of the European Central Bank (ECB), Mario Draghi, stepped into the spotlight again on Monday, as he testified in front of European policymakers amid renewed concerns of deflation and questions regarding the effectiveness of his policies.
"The economic recovery in the euro areas is losing momentum," Draghi told the Committee on Economic and Monetary Affairs. "The early information on economic conditions which we received over the summer has been somewhat weaker than expected."
He also defended the take-up of the ECB's latest cheap loan program, dubbed TLTRO or targeted longer-term refinancing operation. Last Thursday, the ECB doled out 82.6 billion euros ($106 billion) in loans to banks—an amount which was viewed as disappointingly low by markets.
Recommended Content
Editors’ Picks
EUR/USD clings to marginal gains above 1.0750
EUR/USD trades in positive territory above 1.0750 in the second half of the day on Monday. The US Dollar struggles to find demand as investors reassess the Fed's rate outlook following Friday's disappointing labor market data.
GBP/USD edges higher toward 1.2600 on improving risk mood
Following Friday's volatile action, GBP/USD pushes higher toward 1.2600 on Monday. Soft April jobs report from the US and the modest improvement seen in risk mood make it difficult for the US Dollar to gather strength.
Gold climbs above $2,320 as US yields push lower
Gold trades decisively higher on the day above $2,320 in the American session. Retreating US Treasury bond yields after weaker-than-expected US employment data and escalating geopolitical tensions help XAU/USD stretch higher.
Addressing the crypto investor dilemma: To invest or not? Premium
Bitcoin price trades around $63,000 with no directional bias. The consolidation has pushed crypto investors into a state of uncertainty. Investors can expect a bullish directional bias above $70,000 and a bearish one below $50,000.
Three fundamentals for the week: Two central bank decisions and one sensitive US Premium
The Reserve Bank of Australia is set to strike a more hawkish tone, reversing its dovish shift. Policymakers at the Bank of England may open the door to a rate cut in June.