Created
: 2025.06.18
- 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: Should incorporate Euro appreciation into our policy decision
World FX news
Breaking news
ECB's Villeroy: Should incorporate Euro appreciation into our policy decision
New
2025.06.18 00:20
2025.06.18 00:20
2025.06.18 00:20
European Central Bank (ECB) policymaker Francois Villeroy de Galhau said on Tuesday that they are in a good position on interest rate policy but noted that there is now more uncertainty following the Iran-Israel conflict.
Key takeaways
"We should incorporate Euro appreciation into our monetary policy decision."
"We need more agile pragmatism more than ever."
"We need a common calendar for the European economy and financial integration following the Draghi report."
"I fully support ECB President Christine Lagarde's idea of global role of Euro."
"We need deeper, more liquid, more integrated financial markets in Europe."
Market reaction
EUR/USD edges slightly lower following these comments and was last seen losing 0.25% on the day at 1.1535.
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
: 2025.06.18
Related articles
EUR/USD plunges below 1.15 as Trump threatens Iran, Dollar surges
33 minutes agoCanadian Dollar snaps win streak as Greenback bids return to the fold
2025.06.18 04:22Panic takes over amid market talks of a US strike on Iran
2025.06.18 03:54EUR/USD slides below 1.1500 as Trump's Iran comments lift the US Dollar
2025.06.18 03:31GBP/JPY Price Forecast: Pound-Yen pares gains, eyes trendline support with Fed rate call in focus
2025.06.18 03:14EUR/JPY retreats from YTD high as ECB and BoJ adopt a cautious tone
2025.06.18 02:35
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
EUR/USD plunges below 1.15 as Trump threatens Iran, Dollar surges
The EUR/USD pair is collapsing by over 0.60% as the US Dollar (USD) remains bid due to its safe-haven status amid the escalation of the Middle East conflict between Israel and Iran, which appears to be broadening as the White House considers its involvement.
New
2025.06.18 05:00Canadian Dollar snaps win streak as Greenback bids return to the fold
The Canadian Dollar (CAD) shed weight against the US Dollar (USD) on Tuesday, tumbling around one-half of one percent as risk aversion grips investors and send them piling back into the safe haven Greenback.
New
2025.06.18 04:22Panic takes over amid market talks of a US strike on Iran
Markets enter panic mode on headlines indicating United States (US) President Donald Trump has become more inclined to strike Iran's nuclear facilities, according to senior White House officials, as cited by Fox News.
New
2025.06.18 03:54EUR/USD slides below 1.1500 as Trump's Iran comments lift the US Dollar
EUR/USD slipped below the key 1.1500 level on Monday, retreating from recent highs as geopolitical risks drove demand for the US Dollar.
New
2025.06.18 03:31GBP/JPY Price Forecast: Pound-Yen pares gains, eyes trendline support with Fed rate call in focus
The British Pound (GBP) weakens against the Japanese Yen (JPY) on Tuesday, slipping lower as a resilient US Dollar (USD) and a steady Yen weigh on the Pound's appeal.
New
2025.06.18 03:14WTI Crude Oil prices lurch higher again as Trump barrels into Israel-Iran conflict
West Texas Intermediate (WTI) US Crude Oil prices rose back into near-term highs on Tuesday, pushed higher by continued escalations in the Israel-Iran conflict.
New
2025.06.18 03:07Dow Jones Industrial Average retreats as Middle East tensions rise
The Dow Jones Industrial Average (DJIA) lost some ground on Tuesday, declining below 42,500 as equity markets roil beneath the weight of the burgeoning Israel-Iran conflict.
New
2025.06.18 02:49Gold price slips below $3,400 as US Dollar firms despite rising geopolitical concerns
Gold prices retreated below the $3,400 level on Tuesday despite deteriorating risk appetite as overall US Dollar (USD) strength drove the yellow metal lower. Nevertheless, the escalation of the Israel-Iran conflict would likely underpin the precious metal due to its safe-haven appeal.
New
2025.06.18 02:40EUR/JPY retreats from YTD high as ECB and BoJ adopt a cautious tone
The Euro (EUR) is pulling back against the Japanese Yen (JPY) on Tuesday after hitting a year-to-date high and its strongest level since July.
New
2025.06.18 02:35Gold Price Forecast: XAU/USD remains afloat as fears mount
Spot Gold set a weekly low of $3,366.25 on Tuesday, bouncing from the level yet in the American session.
New
2025.06.18 02:01Disclaimer:
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
