Author: FX
The ECB kept rates unchanged with ECBs Lagarde saying that “the disinflationary process is over,” which suggests that she thinks inflation downward pressure has eased more than many expected. Following Lagarde’s speech, traders have scaled back expectations for near-term ECB rate cuts. The probability of another cut by mid-2026 is now seen at around 50%, down from higher levels before today.The ECB’s deposit facility rate will remain at 2.00% for now, and markets appear convinced there won’t be much easing until there is clearer evidence that inflation is falling sustainably.Inflation projections through 2026–27 are broadly in line with earlier forecasts,…
Christine Lagarde, President of the European Central Bank (ECB), explains the ECB’s decision to leave key rates unchanged at the September policy meeting and responds to questions from the press.Join our ECB Live Coverage hereECB press conference key takeaways”Growth shows resilience of domestic demand.””GDP data reflects Q1 front-loading.””Investment should be underpinned by government spending.””Higher tariffs, stronger Euro, competition to hold growth back.””Headwinds on growth should fade next year.””Indicators of underlying inflation consistent with our 2% target.””Forward-looking indicators suggest that wage growth will moderate further.””Moderating wage growth to keep lid on domestic price pressures.””Core inflation to drop on declining labour cost…
Christine Lagarde, President of the European Central Bank (ECB), explains the ECB’s decision to leave key rates unchanged at the September policy meeting and responds to questions from the press.Join our ECB Live Coverage hereKey quotes”Trade uncertainty has diminished.””All governments need to operate on basis of EU fiscal framework.””Minimal deviation from target will not necessarily justify movement.””Euro Area sovereign bond markets are orderly, functioning with smooth liquidity.” Euro FAQs The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar.…
Lagarde comments at ECB press conference Source link
Christine Lagarde, President of the European Central Bank (ECB), explains the ECB’s decision to leave key rates unchanged at the September policy meeting and responds to questions from the press.Join our ECB Live Coverage hereKey quotes”Disinflationary process is over.””We are still in a good place.””Inflation is where we want it to be.””Domestic economy is showing resilience.””We are not on predetermined path.””The decision was unanimous.” Source link
Christine Lagarde, President of the European Central Bank (ECB), explains the ECB’s decision to leave key rates unchanged at the September policy meeting and responds to questions from the press.Join our ECB Live Coverage hereKey quotes”Growth shows resilience of domestic demand.””GDP data reflects Q1 front-loading.””Investment should be underpinned by government spending.””Higher tariffs, stronger Euro, competition to hold growth back.””Headwinds on growth should fade next year.””Indicators of underlying inflation consistent with our 2% target.””Forward-looking indicators suggest that wage growth will moderate further.””Moderating wage growth to keep lid on domestic price pressures.””Core inflation to drop on declining labour cost pressures, stronger Euro.””Risks…
The Euro (EUR) reverses sharply against the US Dollar (USD) on Thursday, snapping a two-day losing streak and climbing back above the 1.1700 mark as traders digest the European Central Bank (ECB) policy announcement and US inflation data. The ECB maintained its key policy rates, including the Main Refinancing Rate at 2.15% and the Deposit Facility Rate at 2.00%, aligning with market expectations. The accompanying statement emphasized that inflation is currently around the 2% target, while the outlook remains “broadly unchanged.”The ECB now sees core inflation at 2.4% in 2025, before easing to 1.9% in 2026 and 1.8% in 2027,…
Fundamental OverviewThe soft NFP report on Friday was again faded completely by the stock market because of the focus on Fed rate cuts. In fact, the dovish bets on the Fed increased and the market is now expecting three rate cuts by year-end (68 bps). Moreover, we have also an 8% probability of a 50 bps cut in September but that will likely happen only if we get a soft CPI report today. In that case, the stock market might get another boost to push into new all-time highs.The bigger picture hasn’t changed much as the stock market continues to…
You can be forgiven for overlooking the ECB policy decision later today as the main event for markets will come in North America trading with the US CPI report due. Both events won’t be too far apart though with the ECB set to announce their decision at 1215 GMT before the US inflation numbers come about at 1230 GMT.But until we get to that, it’s going to be a rather pensive and tentative session in European morning trade.The ECB isn’t going to be cutting key interest rates today and president Lagarde should reaffirm most of the same communique that we’ve…
EUR/GBP is poppin’ up long wicks near a key trend support zone. Think the pair will extend its uptrend in the next trading sessions? Let’s take a look at the 4-hour time frame! EUR/GBP 4-hour Forex Chart by TradingView The ECB takes the stage today, and judging from members’ speeches we’ve heard lately, they may not sound quite as dovish this time around. Traders will be watching for any shift in tone that hints at how long rates might stay where they are. Over in the U.K., the pound could get tossed around by Friday’s GDP release and a batch…