The Euro has strengthened against the British Pound and has made gains against the majority of its most traded peers after German finance minister Wolfgang Schauble and Chancellor Angela Merkel threw in their support for the European Central Bank in the ongoing hearing over the legality of the ECB’s Outright Monetary Transactions (OMT) programme.
Schauble told judges in the German constitutional court that he is confident that the ECB is acting within its mandate by offering to purchase unlimited quantities of peripheral bonds from countries who agree to a reform programme. Schauble also warned the court that if it does reject the OMT it could result in Germany leaving the Eurozone, an event that could lead to ‘unforeseeable’ consequences. He also added that he didn’t believe that the ECB’s measures fell within the remit of German courts.
He said; “The German government sees no signs that the measures taken by the ECB so far violate its mandate.” He also added that the German court that they should respect the independence of the European Central Bank.
Schauble’s stance is in contrast with the German Bundesbanks head Jens Weidmann, who believes that the OMT programme is tantamount to the financing of governments by the central bank.
The legal challenge against the ECB’s bond-buying programme was brought to the courts by a group of Germans arguing that the OMT is illegal because under Germany’s laws only the national parliament cans decide on how German taxpayer’s money is spent.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3286
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8546
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4215
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.7074
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7528
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1710
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7046
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5887
(Correct as of 12:20 pm GMT)
