Super Mario’s options are limited to help the Euro Zone
Like the pound it is that last working day of the summer and we expect very little movement. Russia may dictate the direction for the dollar as the Ukrainian conflict flares up again and if JP Morgan can prove it was hacked by the Russian Government it may become twitchy bum time. Below is a link that is a scary read re Russia;
The Pound has no news today – only Euro News which is more than enough. We hit the 1.2600 mark again today after Schaeuble’s comments. Next week’s PMI numbers may give a little more direction.
Super Mario is about to be “not so happy”. Last night our Trading screens flashed red with the following headline;
SCHAEUBLE SAYS ECB HAS REACHED LIMIT IN HELPING EURO AREA
Schaeuble is the German Finance minister and this is the last thing Super Mario wanted as the French Prime Minister is calling on the ECB to do what ever it takes to stimulate the economy the Germans are saying Nein! Now Mario Draghi is in a pickle what is he to do as it appears that printing money is no longer a option and that monetary policy has reached its limit to help the Euro Zone?
Below is a link to a story from Zero Hedge (an good alternative to commercial financial news – beware the language can be colourful!) It also highlights why Draghi’s options are becoming limited to help save the Euro Zone.