Mario Draghi, President of the ECB, says that despite all the pessimistic forecasts, the common European currency is safe and won’t see any collapse. He is sure that tighter integration and cooperation within the EU is inevitable.
The ECB’s major goal at this stage is to preserve the Euro as a part the bank’s. Therefore, the bankers will take all the steps necessary to achieve this goal.
The President of the ECB is optimistic about the forecasts for European economies. He underlines that the eurozone will see economic growth in late 2012.
The Euro cannot take advantage of the weakness of its major rival (the US Dollar) as the former is not so attractive any more. Investors distrust the eurozone while Spanish bond yields hinder any attempt of the common currency to show stable recovery.
Yesterday’s Spanish bond auction failed to come up to analysts and investors’ expectations. Lower demand resulted in lower yield. The market shows that the situation is critical. Madrid may well address for full external financial aid in order to save the Spanish economy from collapsing.
Last week, the Federal Reserve failed to clarify the situation over its further monetary policy. So it is not clear, whether the FRS will initiate another round of quantitative easing in order to stimulate the weakened US economy.
The RP department of reports that EURUSD keeps fluctuating within a narrow price range close to the 2-year low (1,2161):
