Created
: 2024.12.13
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
ECB's Villeroy: There will be further rate cuts
Breaking news
ECB's Villeroy: There will be further rate cuts
New
2024.12.13 16:50
2024.12.13 16:50
2024.12.13 16:50
In an interview with BFM business radio on Friday, European Central Bank (ECB) policymaker Francois Villeroy de Galhau said that there will be further rate cuts, per Reuters.
Villeroy added that they are at ease with market projections on future rates and noted that French bond spreads have moved away from Germany and moved closer to Italy.
Market reaction
The Euro stays under modest bearish pressure following these comments. At the time of press, EUR/USD was trading at its lowest level since November 26 at 1.0458, losing 0.1% on the day.
ECB FAQs
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets - usually government or corporate bonds - from banks and other financial institutions. QE usually results in a weaker Euro. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The ECB used it during the Great Financial Crisis in 2009-11, in 2015 when inflation remained stubbornly low, as well as during the covid pandemic.
Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the European Central Bank (ECB) purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the ECB stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive (or bullish) for the Euro.
Last updated
: 2024.12.13
Related articles
US Dollar climbs on robust NFP results, rises to multi-year highs
39 minutes agoMexican Peso plunges after US NFP data, Banxico dovish tilt
46 minutes agoCanadian Dollar twists after better-than-expected December jobs figures
2025.01.11 02:23EUR/USD Price Analysis: Pair in multi-year lows, sellers advance
2025.01.11 01:10Fed's Goolsbee: Rates should go down if conditions are stable and there is no uptick in inflation
2025.01.11 00:23USD/JPY remains subdued near 158.00 after reaching multi-month high
2025.01.11 00:06
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
US Dollar climbs on robust NFP results, rises to multi-year highs
The Dollar Index (DXY), which measures the value of the USD against a basket of currencies, rallies on renewed inflation concerns as the stronger than expected Nonfarm Payrolls (NFP) report pushes out the Federal Reserve's (Fed) rate cut timeline, fueling US Dollar demand and driving the DXY closer to 110.00.
New
2025.01.11 03:00Mexican Peso plunges after US NFP data, Banxico dovish tilt
The Mexican Peso (MXN) is under pressure against the Greenback, hitting a six-day low following the release of a stellar United States (US) employment report and after the Bank of Mexico (Banxico) revealed that larger interest rate cuts could be discussed in the coming meetings.
New
2025.01.11 02:53Canadian Dollar twists after better-than-expected December jobs figures
The Canadian Dollar (CAD) caught a bid on Friday, getting bolstered across the broader FX market after Canadian jobs figures in December surged well above forecasts.
New
2025.01.11 02:23Dow Jones Industrial Average slumps after sturdy NFP print
The Dow Jones Industrial Average (DJIA) took a hard hit on Friday after investor sentiment soured on the back of a lofty Nonfarm Payrolls (NFP) jobs data report which showed a far higher rate of hirings than most investors anticipated.
New
2025.01.11 02:05EUR/USD Price Analysis: Pair in multi-year lows, sellers advance
EUR/USD deepened its descent into fresh lows not seen since November 2022, briefly dipping below 1.0250 on Friday and the pair tallies four-day losing streak, reflecting an overall negative tone in recent sessions.
New
2025.01.11 01:10Fed's Goolsbee: Rates should go down if conditions are stable and there is no uptick in inflation
In an interview with CNBC on Friday, Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee said if conditions are stable and there is no uptick in inflation, with full employment, rates should go down, per Reuters.
New
2025.01.11 00:23Big upside in December U.S. payrolls cements a Fed hold this month - RBC Economics
U.S. labor market data continue to show strength towards the end of last year, in line with job openings data that turned around to rise consecutively in October and November, RBC Economics' economists note.
New
2025.01.11 00:09USD/JPY remains subdued near 158.00 after reaching multi-month high
The USD/JPY remains subdued after hitting a six-month high of 158.88 following the release of a stellar US Nonfarm Payrolls report, which saw the Unemployment Rate falling near 4%.
New
2025.01.11 00:06Canadian labor markets firmed, but still soft, in December - RBC Economics
The December labor market numbers are clearly firmer than expected, with headlines and details broadly better than feared.
New
2025.01.10 23:51GBP retains a soft undertone - Scotiabank
The Pound Sterling (USD) is down marginally on the session but, like many of its G10 counterparts, the pound has settled into a tight trading range into the end of the week, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.01.10 23:03Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
