ECB to supervise banks in November

The European Central Bank (ECB) has announced that it will supervise banks in the Euro area, including 120 large banks.

The ECB President, Mario Draghi has once again highlighted that the economic recovery is losing momentum and "no indication that the sharp decline (industrial production and manufacturing) registered in August will stop." High unemployment, weak credit growth and the risk of deflation are the regular themes of his speeches.

He adds "that the success of our measures critically depends on a number of factors outside the realm of monetary policy."

Nevertheless, Draghi continues to not address the fundamental flaw of all of this- the lack of a central treasury in Europe. Coordination between different banks would be daunting challenge.

The full content of his speech can be read from the ECB`s website.

I have maintained a short call for EUR/USD since May and everytime Draghi speaks, this pair falls further.