Merkel Approves of Bond Buying Plan

German bond yields are “very, very low” while other countries’ are “very, very high,” Merkel told the joint news conference. “What I can say is that the European Central Bank is acting with independence and within the framework of its mandate, that it is responsible for monetary stability and that it is introducing its measures within the framework.”
Even so, measures including those meant to stabilize the currency, “cannot replace political action,” she said.
With Draghi saying the ECB will help only if a government asks for aid from the euro area’s rescue funds first, Merkel said she and Rajoy “didn’t talk at all about conditions” for a possible Spanish sovereign bailout.

via Bloomberg

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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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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