{"id":142507,"date":"2019-02-25T09:05:33","date_gmt":"2019-02-25T14:05:33","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=142507"},"modified":"2019-02-25T09:04:11","modified_gmt":"2019-02-25T14:04:11","slug":"draghi-highlights-the-risks-of-leaving-the-eu-single-currency","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/02\/draghi-highlights-the-risks-of-leaving-the-eu-single-currency\/","title":{"rendered":"Draghi Highlights The Risks Of Leaving The EU\/Single Currency"},"content":{"rendered":"
February 25, 2019<\/div>
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By Orbex<\/strong><\/p>\n

During a speech in Italy on Friday, ECB president Mario Draghi warned of the dangers of leaving the European Union.<\/p>\n

Draghi\u2019s main message was that a country leaving the EU or the single currency would not necessarily find greater sovereignty.<\/p>\n

On this matter, Draghi said:<\/p>\n

\u201cBeing outside the EU might lead to more policy independence, but not necessarily to greater sovereignty. The same is true of the single currency.\u201d<\/p><\/blockquote>\n

The ECB chief also noted:<\/p>\n

\u201cMost countries would no longer benefit from local currency invoicing, which would exacerbate the effects on inflation if they undertook large exchange rate devaluations.\u201d<\/p><\/blockquote>\n

Draghi also highlighted other risks, saying that countries leaving the EU \u201cwould be more exposed to monetary policy spill-overs from abroad \u2013 not least from\u00a0the ECB itself<\/a>\u00a0\u2013 which could constrain their domestic policy autonomy.\u201d<\/p>

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Draghi\u2019s comments are extremely prescient given that Brexit is now just a month from happening. Furthermore, he delivered the speech in a country where eurosceptic tensions have been rising recently. This\u00a0is\u00a0reflected in the two anti-establishment parties currently sharing power in a coalition government.<\/p>\n

There have also been significant wins for the\u00a0far-right in regional elections<\/a>. This is raising concerns about the upcoming European Parliament elections this year and the potential for the far right to gain further political standing.<\/p>\n

Technical Perspective<\/strong><\/h2>\n

\"DAX\"<\/a><\/p>\n

The rally in the DAX saw price breaking above the local 11396.4 resistance level. Meanwhile, the recovery off the bearish channel low continues. Price is now fast approaching the next big resistance zone between 11690.8 \u2013 11768.2 where we also have the 50% retracement from May 2018 highs.<\/p>\n

By Orbex<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex During a speech in Italy on Friday, ECB president Mario Draghi warned of the dangers of leaving the European Union. Draghi\u2019s main message was that a country leaving the EU or the single currency would not necessarily find greater sovereignty. On this matter, Draghi said: \u201cBeing outside the EU might lead to more […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-142507","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/142507","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=142507"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/142507\/revisions"}],"predecessor-version":[{"id":142512,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/142507\/revisions\/142512"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=142507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=142507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=142507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}