abcde_98

EUR/GDP Could Hit Parity - Or Correct

Asbytec, thanks for your response. I've often wondered why the rate cuts have continued when the previous ones have had very little effect (yes, easiest/quickest tool for a central bank, gives perception of trying to help an economy even if know it might not have little effect).. Id say a floor of 1% would be good vs 0% (maybe the Fed can learn from Japan) or 5% (maybe the ECB can learn from others).vs 2%/2.

In another article ECB member Weber gives 4 reasons for possibly stopping the rate cuts. I was rather surprised at the reasons. You touched on 1 or 2 reasons. I'd appreciate your thoughts on Weber's reasons and my response comments. It's good discussion.
Here's the link to Weber's comments / my thoughts.
seekingalpha.com/artic...

EUR/GDP Could Hit Parity - Or Correct

i'd say the next relatively significant move of EURGBP will be based moreso on fundamentals (vs pure technicals)

UK is generally expected to reduce rates in January
EU rate decision in January now seems uncertain due to yesterday's statement/opinion by someone in the ECB that further rate reductions are belived to be limited.

The EU/ECB doesn't work so well in my opinion because there is rather wide divergence in the EU members' economies. This could be why the ECB often goes with the status quo (ie, no rate change) and is slower to act (change). But then again, Hugh Hendry had an ear-opening comment on CNBC in late October where he criticized the ECB's inaction and called it "the most conceited....(bunch of people)" (Google it for the eaxct quotation).
How the ECB thinks future rate cuts are limited is beyond me... their economies are doing poorly and seemingly will get worse, especially the Brit's tourism spending in EU, and banks who lent money to in Central/East Euopean homeowners who will have a very difficult time repaying the Swiss Franc/Euro loans.
Does the ECB have the best interests of EU citizens in mind?

ECB actions are perplexing.