ECB to cut 2019 and 2020 growth forecasts tomorrow - Reuters

Eren Sengezer FXStreet

Citing two sources familiar with the matter, Reuters today reported that the European Central Bank (ECB) is expected cut to its growth projections for both 2019 and 2020 tomorrow.

"Growth will be not far above 1 percent both this year and next, the figures are expected to show, underpinning the ECB's plans to approve more stimulus, the sources, who asked not to be named, told Reuters," wrote Reuters' Balazs Koranyi.

The ECB is expected to announce a comprehensive stimulus package that includes a rate cut to the policy rate and possibly a re-introduction of a 12-month quantitative easing (QE) programme.

Previewing the ECB meeting, TD Securities analysts said that they are expecting the ECB to announce a 20bps rate cut with tiering alongside a €40 billion monthly QE. Commenting on the possible market reaction, "Our dovish ECB call has us looking for downside risks to EURUSD. We think spot will be more sensitive to a large QE announcement than rate cuts as much of the expected Fed/ECB policy path differential already looks priced,” analysts said.

Meanwhile, the EUR/USD pair is trading at 1.1000, losing 0.4% on a daily basis.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD trims losses, back to 1.1830

EUR/USD manages to regain some composure, leaving behind part of the earlier losses and reclaim the 1.1830 region on Tuesday. In the meantime, the US Dollar’s upside impulse loses some momentum while investors remain cautious ahead of upcoming US data releases, including the FOMC Minutes.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.