ECB Surpise Interest Rate Cut

[Rambo35]

I think most were surprised by the 25 basis point interest rate cut down to 0.25%. The Eurozone is facing more of a deflationary environment than an inflationary at the moment so I assume they felt the comfort of it. I am glad that the ECB does not want to make the same mistake as Japan and the US have done and print money in order to artificially create something.

I am not saying that the ECB has taken the right steps and is a great central bank, but if I have to compare the ECB with the US Fed then they are far superior in my opinion.

Either way, the interest rate cut by the ECB plus the NFP report did create some nice trading opportunities (short-term as well as long-term).

 

[willforex]

I think most were surprised by the 25 basis point interest rate cut down to 0.25%. The Eurozone is facing more of a deflationary environment than an inflationary at the moment so I assume they felt the comfort of it. I am glad that the ECB does not want to make the same mistake as Japan and the US have done and print money in order to artificially create something.

I am not saying that the ECB has taken the right steps and is a great central bank, but if I have to compare the ECB with the US Fed then they are far superior in my opinion.

Either way, the interest rate cut by the ECB plus the NFP report did create some nice trading opportunities (short-term as well as long-term).

Yeah, Was a wonderful week with bigger movements

 

[PhilRichards]

Yes, I am interested to see if the interest rate differential between the Uk and the EU makes a difference to the movements of the EUR/GBP.

 

[Red Herring]

I am interested about the USD. Can it gain some more power?

 

[Pharaoh]

The ECB doesn't need the ability to print money. They can just pressure member countries into stealing money from bank account holders like they did in Cyprus.

 

[alanrox]

The ECB doesn't need the ability to print money. They can just pressure member countries into stealing money from bank account holders like they did in Cyprus.

Totally agree with you pharaoh

 

[dkami]

I think most were surprised by the 25 basis point interest rate cut down to 0.25%. The Eurozone is facing more of a deflationary environment than an inflationary at the moment so I assume they felt the comfort of it. I am glad that the ECB does not want to make the same mistake as Japan and the US have done and print money in order to artificially create something.

I am not saying that the ECB has taken the right steps and is a great central bank, but if I have to compare the ECB with the US Fed then they are far superior in my opinion.

Either way, the interest rate cut by the ECB plus the NFP report did create some nice trading opportunities (short-term as well as long-term).

ECB now can't cut much more as it's near on 0.0 like US and Japan, So what make's you think the next step for ECB isn't to go down the same road as US and Japan?

To me it's clear ECB will and why wouldn't they after seeing great results like the biggest bull market in US history and Nikkei up 70% in such a short time?

P.S. Might just well be the best time now to jump in on the next bull market and party on

 

[RahmanSL]

Party??? What party?...hmmmm...invitation must be lost in the mail somewhere....But okay...I am on...just bring out the...ehhhh...coke & sprit??....and grill lamb

I am taking the middle road....straddle somewhere in between trades...if EUR or the USD goes up, I am fine with that....and if they go down, that's fine with me too....just keep some silver & gold on the side in case everything fails.

 

[Rambo35]

ECB now can't cut much more as it's near on 0.0 like US and Japan, So what make's you think the next step for ECB isn't to go down the same road as US and Japan?

To me it's clear ECB will and why wouldn't they after seeing great results like the biggest bull market in US history and Nikkei up 70% in such a short time?

P.S. Might just well be the best time now to jump in on the next bull market and party on

The ECB will not do the same and while there was an artificial bull market created and nice trading opportunities along with it, the Nikkei is down over 80% from where it was and the US is going to follow after this artificial run is over. I am not sure the ECB will understand this, but time will tell.

 

[Pharaoh]

I'm waiting to see which county will be the first to try out negative interest rates.