European Central Bank (ECB) Vice President Luis de Guindos said on Tuesday,”concerns about high inflation have shifted to economic growth.”
Additional takeaways
We will have new projections in December.
But developments point to growth remaining fragile.
Geopolitical risks are increasing.
Potential changes in US trade policy will only add to the uncertainty.
When one imposes tariffs, they have to be prepared for retaliation - which can start a vicious cycle.
Meanwhile, his colleague Francois Villeroy de Galhau said that “Trump policies are likely to have limited impact on European inflation.”
Market reaction
The EUR/USD pair is back on the green, testing 1.0500 at the time of writing. The pair is up 0.10% on the day.
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 climbs to multi-week highs near 1.0500 after German and EU PMI data
EUR/USD gathers bullish momentum and rises toward 1.0500 in the European session on Friday. The upbeat PMI data from Germany and the Eurozone, which showed an expansion in the private sector's business activity in January, provide a boost to the Euro and helps the pair push higher.
GBP/USD holds recovery gains near 1.2400 amid risk-on mood
GBP/USD holds the rebound at around 1.2400 in the European session on Friday. The pair’s upside could be attributed to upbeat market mood and broad US Dollar weakness, fuelled by US President Trump's no tariff talks on China. UK and US PMIs are next in focus.
Gold price bulls take a breather near multi-month top amid positive risk tone
Gold price (XAU/USD) enters a bullish consolidation phase during the first half of the European session and oscillates in a range above the $2,770 area, near a multi-month top touched earlier this Friday.
Dogelon Mars pumps more than 85%, whales dump 128 billion coins and realize a profit
Dogelon Mars (ELON) price continues its rally on Friday after rallying more than 18% this week. On-chain data shows that ELON whale wallets realized profits during the recent surge. The technical outlook suggests a rally continuation of the dog-theme meme coin, targeting double-digit gains ahead.
Federal Reserve set for an extended pause
After 100bp of rate cuts the Fed has signalled it needs evidence of economic weakness and more subdued inflation prints to justify further policy loosening. President Trump’s low tax, light-touch regulation policies should be good news for growth.
Trusted Broker Reviews for Smarter Trading
VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.