DailyFX European Market Wrap: Draghi Breathes Life into the Euro
ECB president Mario Draghi tells the market he’s “confident” the European Central Bank is using the right tools to keep inflationary pressure up. Also that ‘the scars inflicted by the financial crisis will fully heal’.
Meanwhile the BoE released its stability report this morning and in it suggested lenders had become complacent about their lending practices.
The Bank's Financial Policy Committee’s is forcing retail banks to find a further 11.4bn pounds in the next 18 months to beef up their finances against the risk of bad loans. Half of that sum will have to be found by year end.
The report looked at credit card usage, mortgage loans and auto loans, all of which have increased since August last year when the Bank of England cut rates by a quarter point to offset the perceived negative from the Brexit referendum vote.
The Bank of England also highlighted the financial stability risks around the Brexit negotiations which are due to be concluded in March 2019.
Elsewhere, the European Commission has been at work today, it’s announced that it’s fined Google a record 2.4bn euros for abusing its power by promoting its own shopping comparison service at the top of search results.
The amount is the regulator's largest penalty to date against a company accused of distorting the market. The ruling also orders Google to end its anti-competitive practices within 90 days or face a further penalty. The US firm signaled it may appeal.
Tomorrow sees the release of French consumer spending, a number that’s been rising recently on the back of the shift in political atmosphere with the election of Emanuel Macron as President. Finally, US pending home sales and the weekly EIA crude oil inventories will be released which, despite falling over the last three weeks, remain well above the 5-year average.
--- Written by Jeremy Naylor, DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.