Live Coverage: Lagarde may show resilience in face of uncertainty, EUR/USD set to rock
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UPGRADEThe ECB is set to cut rates again, but what will it do next? After surging, EUR/USD is waiting for the next piece of news.
Follow live coverage here on Discord
Join FXStreet Premium to participate in the live coverage, get Gold alerts, access the analysts, and lots more.
ECB deals with tariff uncertainty, massive defense spending
The European Central Bank (ECB) is widely expected to cut interest rates by 25 bps again. Members of the Governing Council have been telegraphing this decision for weeks, so the impact of this loosening is fully priced.
Will the ECB continue slashing borrowing costs? The stronger euro exchange rate further reduces inflation by lowering the costs of imported goods. On the other hand, fresh US tariffs could lift costs, and prices beyond imports could keep inflation up.
If US President Donald Trump's policies—and the bloc's countermeasures— continue escalating, the economies could suffer, pushing prices down rather than up.
In addition, the Frankfurt-based institution will need to assess the impact of new fiscal spending in the Eurozone, led by a German defense splurge.
ECB President Christine Lagarde may deflect any questions about the next moves and plan on the bank's upcoming forecasts due with the June decision.
Live financial market coverage
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The ECB is set to cut rates again, but what will it do next? After surging, EUR/USD is waiting for the next piece of news.
Follow live coverage here on Discord
Join FXStreet Premium to participate in the live coverage, get Gold alerts, access the analysts, and lots more.
ECB deals with tariff uncertainty, massive defense spending
The European Central Bank (ECB) is widely expected to cut interest rates by 25 bps again. Members of the Governing Council have been telegraphing this decision for weeks, so the impact of this loosening is fully priced.
Will the ECB continue slashing borrowing costs? The stronger euro exchange rate further reduces inflation by lowering the costs of imported goods. On the other hand, fresh US tariffs could lift costs, and prices beyond imports could keep inflation up.
If US President Donald Trump's policies—and the bloc's countermeasures— continue escalating, the economies could suffer, pushing prices down rather than up.
In addition, the Frankfurt-based institution will need to assess the impact of new fiscal spending in the Eurozone, led by a German defense splurge.
ECB President Christine Lagarde may deflect any questions about the next moves and plan on the bank's upcoming forecasts due with the June decision.
Live financial market coverage
FXStreet covers major economic releases in a live blog format, to provide readers an instant verdict of the data, rapid analysis of key assets, and for Premium members, the abilty to ask our experts questions in real time.
FXStreet Premium
FXStreet Premium provides subscribers access to analysts, exclusive actionable analysis, signals, Ed Ponsi's webinars, trade plans and a bullish/bearish indicator for Gold on critical events. Join FXStreet Premium here.
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