ECB’s de Guindos: Trade war is bad news for the world economy, everyone loses in that situation

Dhwani Mehta FXStreet

European Central Bank (ECB) Vice President Luis de Guindos said on Monday, “trade war is bad news for the world economy, everyone loses in that situation.”

US President Donald “Trump administration has increased economic uncertainty due to tariffs, deregulation,” the ECB official added.

Additional quotes

Effect of tariffs on inflation may be compensated by lower economic activity.

We believe inflation is converging at 2%; everything is going in the right direction.

Having greater uncertainty makes the situation more opaque than 6 months ago.

Spain will have to spend 2.7% of its GDP on defence in four years, increasing budget by EUR6 billion per year.

Market reaction

These comments fail to move a needle around the Euro, with EUR/USD trading flat on the day near 1.0885.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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