ECB Preview: The bond buyind scheme to keep the euro afloat

FXStreet Team FXStreet

The European Central Bank (ECB) is widely expected to announce an increase in its stimulus measures when it meets on Thursday in Frankfurt. Joseph Trevisani, an analyst at FXStreet, expects a prosperous euro after the meeting.

Don't miss Yohay Elam's ECB Preview

Key quotes

“An expansion of the €750 billion Pandemic Emergency Purchase Program (PEPP), the bank’s bond buying effort launched in March, will likely be accompanied by the long-standing warning that the main burden of European recovery must be borne by the national governments.”

“The ECB will update its economic estimates on Thursday and Ms Lagarde has said she expects the eurozone to contract between 8% and 12% this year.”

“In March the ECB projected a 1.6% inflation rate by 2022, that forecast will most likely be reduced in Thursday’s economic estimates. Neither central bank has been successful in the post-financial crisis decade in bringing inflation to their target.”

“The additional PEPP limits and the cheerleading Ms Lagarde will give to the new EU program should keep the euro buoyant.”

Author

FXStreet Team

FXStreet

EUR/USD: US Dollar comeback in the makes?

The US Dollar stands victorious at the end of another week, with the EUR/USD pair trading near a four-week low of 1.1742, while the USD retains its strength despite some discouraging American data released at the end of the week. The pair edged higher on Friday, after the United States Supreme Court ruled against President Donald Trump's tariffs, although the advance is not enough to change the latest USD flow.

GBP/USD braces for more pain, as 200-day SMA tested

GBP/USD broke the previous week’s consolidation to the downside, as sellers returned with pomp, smashing the major back toward the levels last seen in late January. The pair tested bids below the 1.3450 barrier as the US Dollar strength largely played out throughout the week, while the Pound Sterling stepped back on expectations of divergent monetary policy outlooks between the Bank of England and the US Federal Reserve.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.

Week ahead: Markets brace for heightened volatility as event risk dominates

Dollar strength dominates markets as risk appetite remains subdued. A Supreme Court ruling, geopolitics and Fed developments are in focus. Pivotal Nvidia earnings on Wednesday as investors question tech sector weakness. Yen and aussie diverge; both pound and euro could recoup their losses.

Broadening drivers of growth: Unpacking GDP and looking ahead

This week’s data delivered a familiar theme with an important twist. The U.S. economy continues to be shaped by powerful forces in high-tech and AI-related investment, but recent releases suggest the growth story may finally be broadening. At the same time, trade flows are moving in a less supportive direction, reminding us that not all parts of the economy are pulling in sync.

Ripple bulls defend key support amid waning retail demand and ETF inflows

XRP ticks up above $1.40 support, but waning retail demand suggests caution. XRP attracts $4 million in spot ETF inflows on Thursday, signaling renewed institutional investor interest.