The latest economic reports coming from the Eurozone give investors reasons to expect possible change in the ECB’s monetary policy. Some experts are inclined to think that the ECB is probably going to approve another round of quantitative easing during the December meeting.
In particular, the assume that the possibility of even easier monetary conditions in the Eurozone boils down to the central bank’s reaction to September’s inflation decline all the way down to 0.1%, which is way below the inflation target, the ECB is trying to hit.
As for the ways of easing, the choice is limited to quantitative easing since Mario Draghi, president of the ECB, keeps on reiterating that the interest rates are at historical lows and cannot be cut anymore.
Still, the ECB bankers themselves assume that it is too premature to talk about quantitative easing since they are still waiting for the previous 1000-billion round of easing to bring fruit in the near future. At the same time, the are getting increasingly concerned about the possible consequences of low oil prices. They are also afraid to misinterpret the situation in the Chinese economy. Most experts still believe that low oil prices are the key reason for the inflation drop in the Eurozone.
FOREX
Masterforex-V Academy reports that the Euro is recovering from the long-term downtrend against the U.S. Dollar. In particular, EURUSD is forming an upswing – wave A/B of level Weekly or higher. More specifically, the price is inside wave b(C ) of a smaller-scale level.
On breaking above the 1.1713, high, the price will continue forming the bullish wave. The closest major levels of resistance are located at 1.1811/19, 1.1850, 1.1926, 1.2058. Alternatively, a break below the bottom of the ascending MF sloping channel and MF pivot 1.0847 will put an end to the rally.
