Bond Buys To Continue From European Central Bank

Through the press conference held by president of European Central Bank they announced the decision to continue with their bond buying program. This news was more or less expected. However, what is concerning is that tenders will be kept at full for as long as required to maintain liquidity in the markets.

Since the fall of Ireland, Dublin has been under pressure from bond markets to call for European aid, resulting in a Eur 85 billion bailout. Despite these measures the contagion effect could not be avoided.

More worries looming around Portugal, Spain and Italy send the EUR trailing down, so much that despite the US fed decision to pump more money into the their economy, the EUR/USD continued to fall.

The European Central Bank has been taking into account the US is volunteering to pitch in to the Financial Stability Fund and “too big for a bailout” is being said about Italy. Maybe it’s time for alternate methods!