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European Central Bank (ECB) Governing Council member and President of the Deutsche Bundesbank, Joachim Nagel, said during the European trading session on Friday that the baseline scenario already entails a more restrictive monetary policy. Nagel added, “It would be more appropriate to respond in June if the outlook does not improve markedly.”
No immediate impact from ECB Nagel's remarks is visible on the Euro (EUR). As of writing, EUR/USD trades marginally higher at around 1.1740 amid weakness in the US Dollar (USD).
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets – usually government or corporate bonds – from banks and other financial institutions. QE usually results in a weaker Euro. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The ECB used it during the Great Financial Crisis in 2009-11, in 2015 when inflation remained stubbornly low, as well as during the covid pandemic.
Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the European Central Bank (ECB) purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the ECB stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive (or bullish) for the Euro.
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European Central Bank (ECB) Governing Council member and President of the Deutsche Bundesbank, Joachim Nagel, said during the European trading session on Friday that the baseline scenario already entails a more restrictive monetary policy.
欧洲央行（ECB）管理委员会成员兼德国联邦银行行长约阿希姆·纳格尔（Joachim Nagel）在周五欧洲交易时段表示，基线情景已经包含了更为紧缩的货币政策。
The GBP/JPY pair gives up its early gains and turns negative to near 212.00 during the European trading session on Friday.
英镑/日元在周五欧洲交易时段放弃早盘涨幅，转为下跌，接近212.00。由于日本财务省（MoF）可能干预外汇市场以应对针对本币的单边投机行为，日元（JPY）突然走强，导致该货币对面临强烈抛售压力。
The US Dollar (USD) plunged nearly 200 pips against the Japanese Yen (JPY) in the early European session on Friday, likely due to another intervention by Japanese authorities.
周五欧洲早盘，美元（USD）兑日元（JPY）暴跌近200点，可能是由于日本当局的又一次干预。该货币对在几分钟内从157.30区域回落至155.50的盘中低点，且无基本面因素支持此举。
欧元/日元连续第二个交易日走弱，周五欧洲早盘时段交投于183.00附近。日线图的技术分析显示，该货币对短期内持看跌偏向，因现货价格受制于9周期和50周期指数移动均线（EMA）之下。
EUR/JPY loses ground for the second successive day, trading around 183.00 during early European hours on Friday.
欧洲央行（ECB）管理委员会成员马迪斯·穆勒（Madis Müller）周五表示，欧洲央行越来越可能需要加息