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ECB observes EUR/USD's rally

August 7, 2020

August 7, 2020

Euro makes ECB nervousDmitri Demidenko

How long will Lagarde&co keep silent about euro’s consolidation?

Jerome Powell can relax and ask his FOMC colleagues why they are looking at him as though their people left for a week, and the home bar is breaking with drinks, but Christine Lagarde’s feelings are different. The euro’s rally prevents the eurozone’s economy from recovering and consumer prices from growing. A few Executive Board members have already said the monetary policy will remain ultra-soft until inflation starts reaching the target level. I can suppose it will take a long time: the 2% level was last reached several years ago. However, [EUR/USD][1] bulls don’t feel bothered.

![LiteForex: ECB observes EUR/USD’s rally][2]

If a woman is angry, she knows she’s not right. Have you ever seen Christine Lagarde getting angry? Can she be always right?! Europe may be lacking money. People say happiness isn’t about money, it’s about love. A pure human love for money. The Fed’s programs look more extensive than the ECB’s, and its balance is likely to grow faster. It’s another argument for the euro’s consolidation.

A more pleasant fact is that the States has started to take the eurozone as an example. The US press has been praising European employment support measures, calling them more efficient, and blaming the Democrats and the Republicans for not being able to reach an understanding during these hard times. It’s used to be otherwise. Europe would hang on the Fed’s every word. Now the Fed head is an ordinary person who does what everyone else does and is even made a fool of at times.

Are you Powell? I’ve been your fan for a long time! Could you please sign for me here?

My pleasure! Here you are.

Hurray! Powell is my loan guarantor now!

![LiteForex: ECB observes EUR/USD’s rally][3]

Low rates and QE would put pressure on the euro and support European exports. Still, the pandemic made other central banks soften monetary policies aggressively, and [EUR/USD][1] managed to soar to 2-year highs. I wonder why Donald Trump is keeping his mouth shut. Last year already, he accused the ECB of deliberately weakening the local currency and thus giving a competitive advantage to European exporters. Why isn’t the US president saying the same about the Fed now? Why does he see the speck in his brother’s eye, but doesn’t consider the beam in his own eye? Or is Trump just tired?

- How can you understand intellectual work isn’t meant for you?

- You get tired when thinking

![LiteForex: ECB observes EUR/USD’s rally][4]

The most interesting thing is the Tweeter talker may be replaced by Joe Biden, who isn’t less talkative. He’s already accusing the current president of having messed up the Chinese campaign. The Republicans strike back saying it’s Biden fault: the former Vice President himself would conduct a policy of appeasement concerning China.

You need to be tough on your enemies. My psychotherapist advises me to write letters to the people I hate and then burn them. I did, but I have no idea whom to send those letters now.

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Price chart of EURUSD in real time mode

![Euro makes ECB nervous][7]

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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