Video address by Jean-Claude Trichet, President of the European Central Bank,
at the Bank of Korea International Conference 2010,
Seoul, 31 May 2010
Ladies and Gentlemen,
First, let me congratulate the Bank of Korea on its 60th anniversary.
The bank has made essential contributions in Korea’s economic development, the reform of the country’s financial system and its integration into the global financial system. The clear focus on controlling inflation and the strengthened independence further buttressed the role of Bank of Korea in the economy. And recently, the Bank’s timely and decisive measures helped Korea weather the global financial crisis. Hence, there are many reasons to congratulate and wish Bank of Korea a very happy birthday!
* * *
Let me now say a few words about central bank cooperation during and after the crisis, which the Bank of Korea is so closely involved in.
The cooperation among central banks has recently taken numerous forms, such as information sharing and the setting of general standards and rules. Such cooperation has been mainly channelled through the various fora at the Bank for International Settlements (BIS) in Basel. These include the Governors’ Global Economy Meeting and the other committees that meet under the aegis of the BIS as well as the Financial Stability Board. The Global Economy Meeting comprises the esteemed Governor Kim and some 30 other governors from all systemically important economies. It is held every two months in Basel and provides a unique opportunity to discuss the global economic outlook, policy challenges as well as any other topics of mutual interest.
Until January this year, the Global Economy Meeting was primarily concerned with assessing global economic and financial conditions. Since then, it was entrusted with an additional assignment: it now provides guidance to, and formally decides on, issues discussed by the various Basel-based central bank committees. This responsibility had been in the hands of G10 Governors for decades. I have the privilege to chair the Global Economy Meeting and find the frank and in-depth discussions of invaluable importance for my own work and for the central bank community at large.
Central bank cooperation is part of a more general trend that is reshaping global governance, and which has been spurred by the global financial crisis. One distinctive aspect of this crisis has been its originating in industrial economies. Emerging countries have also been severely affected, but as a group remained a source of strength for the world economy. It is therefore not surprising that the crisis has led to even better recognition of their increased economic importance and need for full integration into global governance. The enhanced role of the Global Economy Meeting I just described reflects exactly this recognition.
* * *
Optimal arrangements for global governance are difficult to find. Global governance –like all collective decision-making – always faces a trade-off between efficiency and legitimacy. Therefore, devising institutions for collective decision making is always a delicate balancing act, even more so at the global level.
The international community has identified the G20 as the premier forum for international economic cooperation. The G20 includes 11 emerging economies and Korea holds the presidency this year. The G20 has already been in existence for over a decade. But the main innovation at this point is to set it up as the key forum for strategic global impulse at the level of the leaders, as well as at the level of Ministers of Finance and Governors of central banks. I therefore wish the Korean presidency a successful steering of this body during the course of this year.
* * *
Let me express my profound gratitude to Mr Lee, former Governor of the Bank of Korea, for the fruitful cooperation between our central banks during his tenure, for his contributions to the Global Economy Meeting and, above all, for his friendship.
I would like to once again congratulate Mr Kim on his appointment as new Governor. I am very much looking forward to working with him.
I am confident that we will continue to build on the cordial relations between the Bank of Korea and the ECB, not only in the context of the aforementioned multilateral policy meetings, but also on occasions such as bilateral meetings and the annual Bank of Korea Central Banking Seminar, which ECB staff always find very constructive and enjoyable.
Best wishes from the ECB and, once again: happy birthday!
European Central Bank
Directorate Communications
Press and Information Division
Kaiserstrasse 29, D-60311 Frankfurt am Main
Tel.: +49 69 1344 7455, Fax: +49 69 1344 7404
Internet: http://www.ecb.europa.eu
Reproduction is permitted provided that the source is acknowledged.
Monday, May 31, 2010
Sunday, May 30, 2010
Analysis for EURUSD 31 May – 4 June 2010
Previous Week 17-21 May
O: 1.2359 H: 1.2672 L: 1.2143 C: 1.2570
Last Week 24-28 May
O: 1.2510 H: 1.2538 L: 1.2153 C: 1.2269
Weekly
Daily
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Hourly
Expected for the week:
- 1.2143 seems to be a 4 year low for now.
- We saw 1.2153 last week but it was unable to pierce even lower.
- Nonetheless, we are still bearish for the coming week.
- However, we do have Trichet and Bernanke speaking early Monday so it might be a choppy or slow Monday especially since London and the US are both on holiday.
- Weekly, daily and hourly all show bearish sentiments but some hurdles need to be cleared first.
- Look at the weekly numbers for more info on the weekly chart.
- On the daily, we are in a bearish trend with 1.2480 as an important turnaround area.
- Two possible scenarios:
- 1 – early bullish week with a turnaround to 1.2337, 1.2271, 1.2145 if 1.2480 cannot be broken
- 2 – Trades below 1.2271 when week is open and if we cannot break above, we may see lower than 1.2145. If 1.2143 cannot be broken, we may see consolidation
- On the hourly, we are still in a bearish trend.
- However, Monday fundamentals may give us some idea into what the Euro has in store for us.
- I would prefer to take a trade from Wednesday onwards after a full market cycle has opened for the week.
- Monday and Friday are important days for fundies.
Weekly numbers
Bullish: 1.2983, 1.2847 (23.6), 1.2724, 1.2588,1.2543, 1.2332
Bearish: 1.2137, 1.2033, 1.1975, 1.1905, 1.1830
Fundamentals (based on +8GMT)
Mon
GBP/USD Holiday
JPY Zone – Trichet/Bernanke speaks
Tue
EUR Zone - GBP news
USD Zone – USD/CAD news
Wed
USD Zone – EUR/USD news
Thu
EUR Zone - GBP/EUR news
USD Zone - USD news
Fri
Day 1 G20 meetings
USD Zone – USD/CAD news
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Sunday, May 23, 2010
Analysis for EURUSD 24-28 May 2010
Previous Week 10 – 14 May
O: 1.2869 H: 1.3094 L: 1.2344 C: 1.2358
Last Week 17-21 May
O: 1.2359 H: 1.2672 L: 1.2143 C: 1.2570
Weekly
Weekly
Daily
Hourly
Fundamentals for the week:
- Europe and Canada is closed for Monday so the “true trend” will probably start on Wednesday, Asian session.
- We saw a four year low on the Euro this week and a battering of the equities.
- Friday seemed to be a recovery day for the Euro and the DOW but let’s see.
- On Sat, we had some news of the Bank of Spain taking control of a troubled regional savings bank for the second time (Cajasur, E596m).
- We also had Germany banning short sales.
- The U$1.1 trillion line didn’t prop up the Euro as would have expected but fundies are fundies.
- Think like a fundamentalist but trade like a chartist.
Expected for the week (techies)
- We hit a new 4 year low at 1.2142 and this is currently a strong support.
- Any lower and we will be heading towards the 1.2042, 1.1824, 1.1636 area.
- The general trend is still bearish but it seems like the trend is reversing and we may be more bullish next week if 1.2742 is the new support.
- Anything below 1.2742 and there might be some consolidation from 1.2742 to1.2498.
- Break 1.2498 = 1.2355, 1.2142, 1.2042, 1.1824, 1.1636.
- On the upside, 1.2779, 1.2898, 1.2986, 1.3285.
- Watch out for any news which may rattle this pair.
Fundamentals (based on +8GMT)
Mon:
EUR/CAD Holiday
USD Zone - USD news
Tue:
EUR Zone - GBP news
USD Zone - USD news
Wed:
JPY Zone – Bernanke speaks
EUR Zone – EUR/ GBP news
USD Zone – EUR/USD news
Thu:
USD Zone - USD news
Fri:
USD Zone - USD news
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