Frank Elderson, a member of the Executive Board of the European Central Bank, said that Europe can promote economic well-being and help enhance the global status of the euro by adhering to and even strengthening the standards of the rule of law.
Speaking at the Italian Constitutional Court in Rome on Monday, he said that the EU is a “beacon of legal certainty, strong institutions and the protection of fundamental rights”, and stressed that the link between this principle and a prosperous economy “is firmly established”.
Elderson, who is also in charge of supervising the legal services of the European Central Bank, said: “By further strengthening the rule of law, we will encourage investment, promote economic growth and enhance the international status of the euro.”
His remarks echoed those of European Central Bank President Christine Lagarde in late May, when she stressed that establishing a strong legal and institutional foundation to maintain investor confidence is one of the three key areas for enhancing the euro’s global status.
Earlier last month, she said, “When we see the rule of law, the judicial system and trade rules in the United States being questioned, with uncertainty persisting and evolving every day, Europe is rightly regarded as a stable economic and political region with a sound currency and an independent central bank.”
Elderson emphasized that some indicators suggest that the decades-long rise of global rule of law may have reached its peak, and some even point to signs of regression. The World Justice Project’s 2024 index shows that authoritarian trends continue, especially with the intensification of corruption and the weakening of judicial systems.
Elderson said that the EU should continue to act as the guarantor of sound standards.
He said, “All of us will continue to play our part – we know the courts will play theirs, and we will play ours – and this will not only protect the rule of law, but also enhance its quality and depth.”
He also emphasized that this principle is “crucial for our central bank and regulatory authorities” to maintain trust in the currency, fulfill their respective duties and ensure the independence of the institutions.
He said that the European Central Bank itself also bears responsibility in this area, for instance, by supervising its independence and acting as the guardian of the treaties between the EU and national central banks.
Technical analysis:
Gold: The operation of buying at the limit after the blue momentum breakthrough we provided in the plugin yesterday and then catching the pullback was perfectly in line with the trend. It rose to a high of 3338 overnight, offering a profit-to-loss ratio of more than 2. The price has approached the 3300 mark again today. We can try to catch the rebound signal once more. For detailed positions, please consult the plugin.
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the picture, please contact V: Hana-fgfg and note “666” in the message.
Nasdaq: We previously reminded in the plugin that the upper level might continue to set new highs in the current stage. However, after the new high is set, it’s important to note that it might just be a liquidity sweep and it’s not advisable to chase the long position. Instead, we should pay attention to the potential head and shoulders signal of a pullback. Today, we’ll be watching whether the price will retreat to 21800 and 21700. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg and note “666” in the message.
Crude oil: Yesterday, after a period of sideways consolidation, the price formed some volatile patterns and then began to rise steadily above 65 in the latter half of the night. For today, we can try to catch the short-term breakout signal of the bullish engulfing pattern. At the same time, we should also pay attention to the possibility of a rebound after the price retraces to the 65-64.50 area and liquidity returns. For detailed positions, please consult the plugin.
(Crude Oil 15-Minute Chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the picture, please contact V: Hana-fgfg and note “666” in the message.
Today’s key economic data and events to focus on:
14:00 UK unemployment rate for May
16:30 Eurozone June Sentix Investor Confidence Index
18:00 US May NFIB Small Business Confidence Index
At 22:30, ECB Executive Board member Donnelly will deliver a speech at the 2025 IIF European Chief Risk Officer Forum.
