German top court criticises European Central Bank crisis bond-buying | Metals Mine

  • German top court criticises European Central Bank crisis bond-buying

    From bbc.co.uk

    Germany's top court has ruled that the European Central Bank's mass bond-buying to stabilise the eurozone partly violates the German constitution. The ruling relates to government debt worth trillions of euros bought by the ECB since 2015, but not purchases in the current coronavirus crisis. The Constitutional Court in Karlsruhe says there is not enough German political oversight in the purchases. Germany's Bundesbank carries the most weight in the ECB's decisions. Italy is among the countries most reliant now on ECB bond purchases because of the severe economic impact of the coronavirus pandemic. The mass ... (full story)

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kingleeny
May 5, 2020 4:47am
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what does this actually mean? and why is AUD just keep getting bid? Are people in rush to hoarde AUD? They are not even an interest play anymore, their rate is same as USD. what gives?
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majorpears
May 5, 2020 5:12am
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Quoting kingleeny
what does this actually mean? and why is AUD just keep getting bid? Are people in rush to hoarde AUD? They are not even an interest play anymore, their rate is same as USD. what gives?
AUD is a commodity currency, so in times of crisis you must watch the technicals. To fundamentally trade is difficult. As an example, AUD is correlated to GOLD. So in times of crisis, GOLD goes up, AUD will follow. But then you have the challenge that USD is the world's reserve currency which also goes up in times of crisis. So when trading AUDUSD, which way do you trade?
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