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European Central Bank chief says patience needed with stimulus

European Central Bank chief says patience needed with stimulus

The sudden moves suggested that some market participants were still unprepared for an end to the stimulus, which the bank says has played a big role in shoring up the economic recovery in the eurozone by keeping a lid on market interest rates.

Draghi himself claimed in mid-2014 that the "the fundamentals for a weaker euro are better today than they were", recalled analysts at Capital Economics, in a note.

"Therefore, a very substantial degree of monetary accommodation is still needed for underlying inflation pressures to gradually build up and support headline inflation developments in the medium term", he added.

Fed Chair Janet Yellen announced at the central bank's monthly meeting last week that USA interest rates were reaching "neutral" levels and any further hikes would be gradual.

"We doubt that Draghi will be using that word again in a hurry, but if he was hoping that today's dovish press conference would ease the upwards pressure on the euro then he was wrong".

This morning at 09:30am there is also the latest release of Retail Sales data for the month of June. this is expected to show a major jump from previous readings which could be good news for anyone selling Sterling.

Seoul suggests inter-Korean border talks
The military has also occasionally launched giant balloons containing anti-Pyongyang leaflets across the border. This computer generated image shows South Korea and North Korea shaking hands.

Disney Legend: Whoopi Goldberg gets honor
And then I thought, ok, the Oprah show was legendary so I can accept it in the name of the Oprah show". If she were here, she would have flipped me the bird at least twice already'.

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The U.S. authorities seized two Russian diplomatic compounds, one in Maryland and another on Long Island, at the same time. The measures were a response to alleged Russian meddling in the United States election.

Analysts have been expecting the ECB to give a clearer sign at the September 7 meeting of when it might start decreasing its 60 billion euros ($69 million) in bond purchases, which are aimed at raising inflation from 1.3 percent toward the bank's goal of just under 2 percent.

Markets reacted sharply anyway, helping to send the euro higher " it's recently pushed above $1.15 for the first time since May 2016 " and bond prices lower. Investors were looking ahead to a European Central Bank policy decision later in the day.

The euro has gained almost 11 percent so far this year against the dollar.

Among the most important data expected in the coming week, investors will be keenly waiting for second-quarter U.S. GDP data.

Oliver Brennan, senior macro strategist at TS Lombard, agreed that the tapering could be expected at an average pace of $10 billion per meeting, which would enable its completion in the third quarter of next year. The primary objective of the bank's stimulus efforts is to get inflation up to its goal of just under 2 percent.

GBP Weakens on Brexit Talk Roadblock as French Claim; "We Want Our Money Back " French Finance Minister Bruno Le Maire has evoked the spirit of Margaret Thatcher after telling the United Kingdom "we want our money back" in the European Parliament. While economists were expecting monthly PPI to decline by 0.1%, the index stagnated relative to the prior month when a decline of 0.2% had been recorded. U.S. bond yields fell, but United Kingdom gilt yields rose. That was just above the 0.8 percent drop economists had expected. The Japan trade surplus makes obvious the power of forex and Japanese yen (JPY/USD) weakness in the equation.

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