![ecb.jpeg](https://steemitimages.com/DQmTUnM2EKtwhHgJ2ch57u3AQmLwXsFpeidtoP4nbPDH96n/ecb.jpeg)
Since the start of the bond buying program of the European Central Bank (ECB) there has been many questions regarding it's legality. After all, financing governments budgets is not part of the mandate of the ECB.  Yesterday the German high court has published a case that proposes that the ECB's policy of Quantitative Easing is not covered by their mandate. The case has now finally reached the European Central Court (ECJ) and it has been requested by the German judges to expedite the procedure, because" the case requires a quick settlement". 
   
Markets don't like uncertainty and the time towards the ECJ ruling can become volatile. A buy the news, sell the rumor kind of thing. Besides, the ECB has announced to continue their bond buying program into 2018, so QE will continue to exist for the next of couple months. 

It would be something if the ECJ concludes that the German judges are right and therefore the ECB acts outside their given mandate. This will probably not happen, since the ECJ is an institution which is created to encourage the integration of the European Union. 
   
Next month there will be parliamentary elections in Germany and it will be a decisive moment for the EU. Merkel will lose the elections and the anti-establishment parties will rise, as has been happening all around the world. But once such a thing happens in Germany, it will become a different story. It seems that the next couple of weeks will have a lot of surprises and many trading opportunities will present itself. Capital will move back to the United States and it will make the dollar stronger, the Euro weaker and the Pound stronger. And a strong dollar is something Trump really doesn't like. Interesting times. 


Sources
- https://www.bloomberg.com/news/articles/2017-08-15/ecb-s-qe-questioned-by-german-judges-asking-for-eu-court-review
- https://www.armstrongeconomics.com/international-news/rule-of-law/the-legal-challenge-to-quantitative-easing/
- http://www.bundesverfassungsgericht.de/SharedDocs/Pressemitteilungen/EN/2017/bvg17-070.html;jsessionid=7579BB29996B202403BE93DA2CC1CC4B.1_cid361