Select Language

ECB's de Guindos: Uncertainty now higher than during Covid

blockHeadVisual
  1. HOME
  2. Get information
  3. World FX news
  4. ECB's de Guindos: Uncertainty now higher than during Covid

World FX news

search
Breaking news

ECB's de Guindos: Uncertainty now higher than during Covid

  • X
  • facebook
  • LINE
  • RSS
  • X
  • facebook
  • LINE
  • RSS
New update 2025.03.17 08:48
ECB's de Guindos: Uncertainty now higher than during Covid

update 2025.03.17 08:48

European Central Bank Vice President Luis de Guindos said late Sunday that US President Donald Trump's policies are causing more uncertainty for the economy than there was during COVID, per Bloomberg. 

Key quotes

We need to consider the uncertainty of the current environment, which is even higher than it was during the pandemic. 

What we're seeing is that the new US administration isn't very open to continuing with multilateralism, which is about cooperation across jurisdictions and finding common solutions for common problems. This is a very important change, and a big source of uncertainty. 

Market reaction

At the time of press, the EUR/USD pair was up 0.05% on the day at 1.0883. 

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.

 

Date

Created

 : 2025.03.17

Update

Last updated

 : 2025.03.17

Related articles

Show more

Writer

FXStreet

Financial media

arrow
FXStreet

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?
No loading Yes loading

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.

Previous article

prev

US Treasury Sec. Scott Bessent: Correction in the markets is healthy

Next article

US envoy says Trump and Putin to hold call on ceasefire deal soon

prev

Most viewed

Australian Dollar climbs after upbeat Chinese PMI data

The Australian Dollar (AUD) recovers some lost ground on Monday, bolstered by the upbeat Chinese economic data.
New
update2025.03.31 10:40

China's March NBS Manufacturing PMI rises to 50.5, Non-Manufacturing PMI jumps to 50.8

China's Manufacturing Purchasing Managers' Index (PMI) edged higher to 50.5 in March from 50.2 in February, the official data released by the National Bureau of Statistics (NBS) showed on Monday.
New
update2025.03.31 10:33

PBOC sets USD/CNY reference rate at 7.1782 vs. 7.1752 previous

On Monday, the People's Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1782 as compared to Friday's fix of 7.1752 and 7.2593 Reuters estimate.
New
update2025.03.31 10:15

EUR/USD looks to build on recovery from multi-week low; holds steady below mid-1.0800s

The EUR/USD pair attracts some dip-buyers following an Asian session dip to the 1.0800 neighborhood and looks to build on its bounce from a multi-week low touched last Thursday.
New
update2025.03.31 09:48

Gold Price Forecast: XAU/USD rises to near record high below $3,100 amid global uncertainty

The Gold price (XAU/USD) gains momentum to around $3,090 during the early Asian session on Monday.
New
update2025.03.31 09:18

US President Donald Trump weighs broader, higher tariffs - WSJ

US President Donald Trump's administration is hurrying to determine the specifics of its new tariff agenda ahead of its self-imposed deadline of Wednesday, considering possibilities after promising to remake the American economy with a slew of new levies, the WSJ citing unnamed sources.
New
update2025.03.31 08:50

US President Donald Trump threatens tariffs on Russian oil if Moscow blocks Ukraine deal

US President Donald Trump said on Sunday that he was "pissed off" at Russian President Vladimir Putin and would impose secondary tariffs of 25% to 50% on buyers of Russian oil if he feels Moscow is blocking his efforts to end the war in Ukraine.
New
update2025.03.31 08:30

AUD/USD edges lower below 0.6300 on global trade concerns

The AUD/USD pair trades in negative territory near 0.6280 during the early Asian session on Monday.
New
update2025.03.31 08:12

China to inject $69 billion into four big banks to strengthen the financial sector

China's finance ministry will inject 500 billion yuan ($69 billion) into four of the nation's largest state banks, following through on Beijing's earlier effort to strengthen the financial sector, per Bloomberg.
New
update2025.03.31 07:38

AUD/JPY Price Analysis: Drops toward 94.20 area as bearish pressure mounts

The AUD/JPY pair extended its decline on Friday, hovering near the 94.30 zone after the European session and slipping closer to the lower end of its intraday range.
update2025.03.29 06:39

Disclaimer:arw

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.

arw
  • Facebook
  • Twitter
  • LINE

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

I agree
share
Share
Line

Line
Facebook

Facebook
X

Twitter
Cancel