ECB's Coeure says short-term rate below zero doesn't pose policy problem | Forex Factory

  • ECB's Coeure says short-term rate below zero doesn't pose policy problem

    From forexlive.com

    • deposit rate can in theory be even more negative; • rapidity of bond market reversal is worrying; • ECB to front-load QE in May, June for seasonal reasons; • will accelerate QE now before summer market lull; • lower bound not hard constraint for monetary policy; • ECB has reached effective lower bound; • bond-market rout sign of reduced liquidity globally; Euro under further pressure with EURUSD testing 1.1250 1.1230 on the remarks; Text of a speech to be given in London;

Comment Options
Razor_trader
May 19, 2015 2:51am
Permalink
Quoting KADC
I checked a number of economic calendars and this speech doesn't appear anywhere. On top of that, he gives a prepared speech yesterday but the rest of the market isn't told until now -- I call shenanigans.
Took a small leaf out of the SNB play book perhaps. A bit of shock and awe.... Look at me, Look at me...
Reply
Razor_trader
May 19, 2015 9:38pm
Permalink
Quoting Macdon
Negative interest rates is theft of the highest order and what happens when the good citizens go to retrieve their hard earned and hard taxed money? Well the banks can only give them 5 cents for every dollar/euro/etc. because that's how much they have lent out. They have taken your $10,000 and lent out $200,000 worth of fiat currency merely by entering digits into a computer. Is this not a crime? Does someone not see this as a crime?
It's tragic that not enough people are recognising it, but in a debt fueled world where everyone likes the cheaper credit and the lower mortgage payments very very few can see the light. I mean, when you can save a few hundred on your mortgage when the interest rates go down, why should you bother worrying about making a few dollars in credit interest on your savings. Part of that is true but what MOST people don't do is kill 2 birds with 1 stone; that is use the savings to pay off their personal debt.

No, the end game will come when there are:
1) No savings,
2) Debt is ratcheted up against the low interest,
3) All equity has been eroded as people spend it (because the banks just seems so happy to lend you back the difference in your asset price and its current balance),
4) Any possible savings have been spent on absolute shit that will likely in 12 months be thrown in landfill,
5) Credit has been obtained for when you don't have the money in point 4), only this time when you throw it in landfill you usually still have 2+ years of repayments left on it.

WHEN Interest rates rise (if they ever could), the debt would cripple 90% of people, businesses and the flow on effect through the system would be an epidemic of financial calamity.

So the problem is not necessarily savings because those savings could be stolen and they are being stolen with the current policies, the problem is that most are still on a credit binge, taking advantage of the cheap credit because ALL will be right. Its this disconnect that will have the masses in fear when the bust occurs. Savings in the bank will mean nothing if you cannot get access to it, but owning your assets or at least being in a position where you could potentially refinance to stay afloat will determine who survives in tact, and who is in absolute tatters during the next crisis.

I ask this question to most people I sit with and have a good discussion on these problems 'How long could you manage IF tomorrow you lost your job'. Most say a month maybe two before they are selling things to get money, usually at a substantial loss to the purchase price.
Reply
KADC
May 19, 2015 2:43am
Permalink
I checked a number of economic calendars and this speech doesn't appear anywhere. On top of that, he gives a prepared speech yesterday but the rest of the market isn't told until now -- I call shenanigans.
Reply
Macdon
May 19, 2015 8:41pm
Permalink
Quoting Elisabeth
Getting into negative interest territory for even the 'ordinary people' will give massive headwinds to right-wingers all over EU.
Good!

It's time the old communist-socialist guard got a kick in the guts. Look at what an unmitigated catastrophe the EU is. The EU has done almost wartime damage to Europe without the death toll and property damage of bullets and bombs.

Negative interest rates is theft of the highest order and what happens when the good citizens go to retrieve their hard earned and hard taxed money? Well the banks can only give them 5 cents for every dollar/euro/etc. because that's how much they have lent out. They have taken your $10,000 and lent out $200,000 worth of fiat currency merely by entering digits into a computer. Is this not a crime? Does someone not see this as a crime?
Reply
insomniawawa
May 19, 2015 2:20am — Edited
Permalink
Quoting RBlackburn
It annoys me that i didn't know there was any event risk ahead of time...

Because there was not any planned event, it's typical for forex that sometimes these dudes make big unexpected moves.

EDIT: I checked it and it was planned speech in London.
Reply
Ojiego
May 19, 2015 3:04am
Permalink
Quoting Taha.M
lets start believing in QUIKIE, you know what I mean lol
Yeah Taha, we all do Quikie, Hit & Run and Guerrilla tactics, but how do you cover your cost by taking 2pips per trade?

Just being curious .....
Reply
iaveight
May 19, 2015 2:25am
Permalink
If need be, the frontloading may be complemented by some backloading in September when market liquidity is expected to improve again. The slightly higher purchase volume that market analysts may observe in the coming weeks is therefore unrelated to the recent episode of market volatility.”

he didnt say they would, he said if need be....... big difference
Reply
RBlackburn
May 19, 2015 2:15am
Permalink
It annoys me that i didn't know there was any event risk ahead of time...
Reply
RBlackburn
May 19, 2015 2:19am
Permalink
Quoting RBlackburn
It annoys me that i didn't know there was any event risk ahead of time...
By annoys me i mean really pisses me off...
Reply
RBlackburn
May 19, 2015 3:18am
Permalink
Quoting Guest
Unexpected news.... Lost 1000$ on s/l's, just great....
Also just lost about $1000
Reply
jegas
May 19, 2015 2:51am
Permalink
Before the FOMC ,all Hollywood Action Thrillers are happen,then only suspense blast.
Reply
Shiv999
May 19, 2015 2:17am
Permalink
Where in the hell this HIGH IMPACT NEWS come from ???

No scheduled event, no press release ??
Reply
KiNgEdwarD
May 19, 2015 2:07am
Permalink
lol
Reply
hniamehr
May 19, 2015 3:45am
Permalink
Quoting Jules75
There was not one EUR cross that still looked bullish after last night close. Always trade with the bigger picture.
couldnt agree with ya more buddy
Reply
Ojiego
May 19, 2015 2:19am
Permalink
Quoting xantiros
hahaha, clear SL and back to up
Yeah, I am with you there .... This Week will be a hot one for SM.
Reply
Ojiego
May 19, 2015 2:25am
Permalink
Are we expecting a positive German ZEW-Sentiment at 11:00 cet? Something above 50.00?

Hmmmm, very interesting
Reply
Bd888
May 19, 2015 2:35am
Permalink
Son of Bitch from nowhere! Just trying to trick again!
Reply
DayTrader30
May 19, 2015 2:22am
Permalink
This is crazy!
Reply
Taha.M
May 19, 2015 2:54am
Permalink
Quoting Jules75
Taha, you'll never get anywhere scalping for 2 pips. Is much easier for a newbie to trade on higher timeframes
no you are wrong my friend and no I am not a new bie, in this age of HFT its best to target small and come out quick.
Reply
Jules75
May 19, 2015 3:11am
Permalink
I think very hard to scalp in this market. Most people call themselves scalpers because they got not patience or don't trust there analysis of the market. Am probably guessing you scalp without stop loss too!!!!
Reply
Taha.M
May 19, 2015 3:22am
Permalink
Quoting Ojiego
Yeah Taha, we all do Quikie, Hit & Run and Guerrilla tactics, but how do you cover your cost by taking 2pips per trade?

Just being curious .....
there are plenty options brother
Reply
yuzo
May 19, 2015 3:34am
Permalink
In yesterday video outlook you could see we closed long position, and began selling under 1.1330 volume level of eurusd. Also selling gbpusd below 1.5640. All trades and recommendation ONLINE !!!

Join my tread, where we have exclusive videos of professional trader Yuriy Ivaschenko: http://www.forexfactory.com/showthread.php?t=539340

Each monday and wednesday at 9:30-9:50 GMT+2, we have new videos with his trades and recommendations. Join
Reply
xantiros
May 19, 2015 4:44am
Permalink
Quoting yuzo
In yesterday video outlook you could see we closed long position, and began selling under 1.1330 volume level of eurusd. Also selling gbpusd below 1.5640. All trades and recommendation ONLINE !!!

yeah, everyone, everything know after,
Reply
Wyfx
May 20, 2015 5:05am
Permalink
Quoting insomniawawa
EDIT: I checked it and it was planned speech in London.
It was not assumed by anyone that this guy would actually divulge major market-moving insider information to a small group of insiders inside a London hotel conference room.

I think the move down in all EUR 13 hours earlier at about 1:55PM EST? (20:55 on my MT4) followed by the methodical light selling leading up to the public release and spike downs .... was them.

Well, them and all their buddies that got emails and BBMs originating from within that hotel conference room.
Reply
yunyoungro
May 19, 2015 3:23am
Permalink
Quoting RBlackburn
Also just lost about $1000
me either .

fuck...
Reply
Kis Zoltan
May 19, 2015 2:56am
Permalink
Central banks go default at first: ukrainian.
Reply
xantiros
May 19, 2015 2:13am
Permalink
hahaha, clear SL and back to up
Reply
tupesene
May 19, 2015 2:18am
Permalink
Trapped
Reply
Taha.M
May 19, 2015 2:26am
Permalink
thats why I am a scalper and just target 2 pips, trading long term is impossible for few including me.
Reply
Elisabeth
May 19, 2015 2:37am
Permalink
Getting into negative interest territory for even the 'ordinary people' will give massive headwinds to right-wingers all over EU.
Reply
Jules75
May 19, 2015 2:43am
Permalink
Taha, you'll never get anywhere scalping for 2 pips. Is much easier for a newbie to trade on higher timeframes
Reply
Trader#6CA5
May 19, 2015 2:44am
Permalink
Quoting insomniawawa
Because there was not any planned event, it's typical for forex that sometimes these dudes make big unexpected moves.
It hit my TP but somehow in forex I found out that price moves because of someone's bullshit than fundamental.

Anyway, PA is very helpful
Reply
Jules75
May 19, 2015 2:45am
Permalink
There was not one EUR cross that still looked bullish after last night close. Always trade with the bigger picture.
Reply
almbayrak
May 19, 2015 2:56am
Permalink
feels like bucket shop spirit
Reply
Taha.M
May 19, 2015 2:59am
Permalink
lets start believing in QUIKIE, you know what I mean lol
Reply
botax93
May 19, 2015 3:04am
Permalink
R u sobber yet?
Reply
yuzo
May 19, 2015 7:24am
Permalink
Quoting xantiros
yeah, everyone, everything know after,
it was online, before that movement. video was provided at 9:00 am yesterday, so first watch than say BIG CRITIC
Reply
Dalngetich
May 19, 2015 9:04am
Permalink
This was just it, lucky i hadn't initiated any trad, 100pips in 10 minutes is crazy for a scalper
Reply
Trader#4132
May 19, 2015 2:12am
Permalink
When a patient is dying on the operating table they will try anything to save him.
Reply
Trader#C255
May 19, 2015 2:37am
Permalink
60min 6E alot of closes < 10 ema = pot. impulse down wave vol spike now
Reply
Trader#F145
May 19, 2015 2:52am
Permalink
I totally agree with you Jules75, my position in EURUSD yesterday is 1.13800 with SL but no take Profit now I can move my SL to 1.12800 so that I can have a profit if ever EURUSD will be bullish again
Reply
Trader#0A76
May 19, 2015 2:56am
Permalink
Unexpected news.... Lost 1000$ on s/l's, just great....
Reply
  • Story Stats