ECB To Revise Communication Strategy After Front Loading Comments

The European Central Bank (ECB) has changed the way it publishes comments, just days after a speech by a key bank member gave away market-moving information to a select group of market participants.

Grumbles from the international investment community have been brewing this week after Benoit Coeure, a member of the ECB’s Executive Board, said in a talk late Monday that the central bank would “front-load” its asset purchasing program during the summer months to counteract weak liquidity.

However, a transcript of the market-moving comments was not published by the ECB until around 7 a.m. London time the following morning – when it caused the euro to plunge by around 1 percent against the dollar.

An ECB spokesperson told CNBC via email that it had intended to publish the speech when it was delivered, but did not because of an “internal procedural error.”

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza