In view of Carsten Brzeski, chief economist at ING, latest disappointing macro data, tentative signs that the resilience of the domestic economy is faltering, a potential rate cut by the Fed and continued dovish communication from ECB officials since Sintra have all pushed the ECB closer to action at the July meeting in two weeks from now.

Key Quotes

“The ECB and Mario Draghi have let the genie of more action out of the bottle and it will be hard to get it back in.”

“The ECB can hardly continue talking the talk without walking the walk. The only question is whether words alone, as dovish as they might be, will be enough at the July meeting.”

“We think the only option to once again only talk the talk would be a change in forward guidance, including “or lower”, and thereby opening the door for rate cuts. Then, September could see a bigger package than initially anticipated, possibly consisting of a 20bp cut in the deposit rate and a restart of QE.”

“With an increasing risk that this package will already be delivered in two weeks from now. Whether it is July or September, Mario Draghi will definitely leave office with a bang.”

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.

Feed news

Latest Forex News

Editors’ Picks

Dollar ticks higher as most Fed officials see cuts as a mid-cycle adjustment

The Minutes of the latest Federal Reserve meeting are out, giving the greenback a modest lift against most major rivals. Policymakers concerned about the efficacy of QE. EUR/USD trading below 1.1100.

EUR/USD News

GBP/USD holds below 1.2150 post-Fed, Merkel-Johnson meeting

GBP/USD is trading with a heavy tone after German Chancellor Angela Merkel gave UK PM Boris Jonson to come out with a solution to avert a no-deal Brexit in the next 30 days.

GBP/USD News

USD/JPY: fundamental background keeps favoring the yen

Equities bounced, but the USD/JPY pair ignored the recovery. US Treasury yields finished the day little changed after FOMC’s Minutes. USD/JPY continues consolidating between Fibonacci levels, upside limited by 106.65.

USD/JPY News

Gold holds in bullish territory, unfazed by FOMC minutes

Gold prices are trapped between the recent 13th august highs and lows of the $1,530s and $1,479s, unfazed by the as expected Federal Open Market Committee minutes which did little to sway the market's opinion that the Federal Reserve will cut interest rates again.

Gold News

Why is the dollar not stronger and why is the euro not weaker?

We can easily make the argument that the US is not going into recession, despite the doomsayers. They are out in force, whether their credibility rests on getting one or two things right in the past, or cycle ideas, or what passes for logic.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •