Live Coverage: European Central Bank set rock EUR/USD with resisting calls to cut (for now)

Yohay Elam FXStreet

The European Central Bank (ECB) is expected to leave rates unchanged in its July meeting, after slashing borrowing costs in June. Investors eye ECB President Christine Lagarde's signals about a potential September rate cut.

Live coverage of the July 2024 ECB decision.

Join FXStreet Premium to participate in the live coverage, get Gold alerts, access the analysts, and lots more.

ECB set to rock EUR/USD and beyond after "hawkish cut"

The ECB's Governing Council is comprised of representatives from 20 countries, some who prefer cutting interest rates and other to keep them up to fight inflation. That is what led to a compromise in June – a rate cut accompanied with a message not to follow up with another move in July.

Since then, inflation remained calm, supporting more cuts, but growth picked up, allowing the ECB to hold rates unchanged. That is fully priced in.

What about the next meeting? That is in September, when the Federal Reserve is set to kick off a loosening cycle with the first move. While ECB President Christine Lagarde rejects calls that her institution follows the Fed, markets assume that she will oversee a rate cut.

In the July meeting, markets will try to sniff the mood in the Governing Council, following the clues. EUR/USD is set to shake and so are other Euro pairs. There may also be some impact on Gold. The precious metal may defy gravity if the ECB is more open to cutting rates. Gold would fall on a more hawkish tone.

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.)

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.