ECB Constancio: Speaks about keeping sufficient monetary policy accommodation
Comments from the ECB Vice President. EURUSD moves back above MA but tests underside of broken trend line.
- By keeping a sufficient degree of monetary policy accomodattion we can be confident that our goal will eventually be reached in accordance with our mandate
- Negative policy rates have been an effective tool in the EURo area
- We have every reason to believe that lower bound is still below current rates
- Negative rates are a tool that needs to be closely monitored
- So far evidence points to the negative side effects being dominate by the positive aspects of the policy.
- We will continue to using forward guidance to some extend but know that its an imperfect tool.
The EURUSD was trading at 119.40 just prior to his speech. The price is up to 119.48 currently. The price is also back above the 200 hour MA at 119.408, but remains below the underside of the broken trend line at 1.1952. So there is a little battle going on now with the 200 hour MA below and the underside of the trend line above.
You can read the full text of Constancio's speech by clicking HERE.