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Coeure: Last Thing We Need Is Currency War

Published 29/01/2018, 15:31
Updated 09/03/2019, 13:30

The World Economic Forum was held in Davos, Switzerland last week.

The main leaders of the different sectors, from entrepreneurs, politicians, intellectuals and journalists, are selected to discuss the most relevant and urgent issues of the day.

In this forum, in addition to the topics about health, environmental and other issues, we came to talk about the foreign exchange market.

The European economy continues to show signs of recovery, the rate of inflation remains low, and with the change in the euro exchange rate (it has been appreciating for several months) in most majors currencies, these factors can play an important role for decisions by the ECB.

Benoit Coeure, a member of the executive board of the European Central Bank (ECB), even said in a full conference that: 'the last thing the world needs today is a currency war' referring to the fact that in recent months the euro the US dollar have reached appreciations well above those that most investors would be waiting for, even saying that this appreciation was not the real value of the euro.

Coeure's statements came after US officials defended a weak dollar

Note that, usually, speeches from board members contain clues about possible directions of monetary policy.

Besides that, we cannot forget that Mario Draghi is expected to comment on the current context of the strong and expressive appreciation of the euro against the dollar (mainly) since the end of 2014.

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