New year, new rate cut from the European Central Bank – but what's next? A bump up in inflation counters an overall weak economy. Live coverage of the decision and the press conference by ECB President Christine Lagarde.
Join FXStreet Premium to participate in the live coverage, get Gold alerts, access the analysts, and lots more.
ECB hawks and doves tussle about next moves
War on the Eastern edge of the continent, tariffs potentially coming from the other side of the Atlantic – these international issues join a leadership vacuum in both Germany and France. The overall Eurozone economy is still stuck, barely registering growth.
All these reasons justify another interest rate cut to support Europe. The doves won the battle for the January 2025 decision. But, the ECB needs to keep inflation down, and prices saw a bump up in December, giving fodder to the hawks. which may push back against any imminent moves.
Christine Lagarde, the bank's president, will have to do a balancing act that may cause volatility in EUR/USD.
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.
(This story was corrected on June 6 at 07:45 GMT to say that the European Central Bank is set to cut interest rates for the first time since 2019, not 2020.)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD clings to strong gains above 1.1000 as US-China trade war deepens Premium
EUR/USD trades decisively higher on the day above 1.1000 on Wednesday as the US Dollar (USD) stays under persistent selling pressure on growing fears over a recession as a result of the US trade war with China. Later in the American session, the Federal Reserve will release the minutes of the March policy meeting.
GBP/USD holds above 1.2800 on broad USD weakness
GBP/USD stays in positive territory above 1.2800 heading into the American session on Wednesday. After China's decision to respond to the US tariffs by imposing additional 84% tariffs on US goods, the US Dollar remains under pressure and helps the pair hold its ground ahead of FOMC Minutes.
Gold extends rally to beyond $3,050 as safe-haven flows dominate markets
Gold preserves its bullish momentum and trades above $3,050 in the second half of the day. Further escalation in the trade conflict between the US and China force markets to remain risk-averse midweek, allowing the precious metal to capitalize on safe-haven flows.
XRP Price Forecast: XXRP ETF and Trump tariffs shaping XRP fundamental outlook
XRP struggles to stay afloat, with key support levels crumbling due to volatility from macroeconomic factors, including United States President Donald Trump's reciprocal tariffs kicking in on Wednesday.
Tariff rollercoaster continues as China slapped with 104% levies
The reaction in currencies has not been as predictable. The clear winners so far remain the safe-haven Japanese yen and Swiss franc, no surprises there, while the euro has also emerged as a quasi-safe-haven given its high liquid status.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.