Lagarde speech: Need to be cautious in policy decisions

Eren Sengezer FXStreet

While speaking on the sidelines at the 2024 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) on Wednesday, European Central Bank (ECB) President Christine Lagarde noted that they need to be cautious when asked about market expectations for further rate reductions.

"We need to be cautious because data will come up and will indicate to us what is the state of the economy, what is the state of inflation, of underlying inflation," she said, adding that there will be a judgmental aspect to their decisions and that they will have to be cautious in doing so.

Market reaction

The EUR/USD pair stays on the back foot following these comments and was last seen losing 0.25% on the day at 1.0773.

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 stays below 1.1850 as Fed policy signals weigh on sentiment

EUR/USD edges modestly higher after opening with a downside gap, trading near 1.1840 during Monday’s Asian session. However, the pair remains vulnerable to further downside as the US Dollar finds support following President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve Chair.

GBP/USD eyes more upside, with Golden Cross in play

Pound Sterling hits four-year highs above 1.3850 on relentless US Dollar selling. GBP/USD appears bullish, positioning for the BoE verdict and US Nonfarm Payrolls. Technically, a Golden Cross on the daily chart suggests more upside for GBP/USD.

Gold: Correction deepens amid easing geopolitical, Fed autonomy woes

Gold price holds its corrective downside near $4,700 in the Asian session on Monday. The precious metal extends the decline after reaching historic highs last week amid signs of easing concerns over geopolitics and the Fed's independence. Traders will take more cues from the US ISM Manufacturing Purchasing Managers Index report due later on Monday.

Week ahead: Could strong US data shift focus from Trump’s rhetoric?

Significant market moves keep investors on their toes. Trump has been the primary source of volatility, mainly when targeting the Fed. Pivotal US data releases next week as markets adjust to potential Warsh Fed nomination. RBA, BoE and ECB meet next week; decent chances of surprises across the board. Dollar/Yen prepares for February 8 elections; gold experiences its first substantial correction.

Global central banks hold steady as EMs signal easing ahead

Central banks across both G10 and emerging markets met this week, with most opting to keep policy rates unchanged. Canada, Sweden, Brazil and Chile all held rates steady. Beyond central bank decisions, the Eurozone's solid Q4 GDP growth bolstered the case for the ECB to keep policy rates unchanged next week.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple deepen sell-off as bears take control of momentum

Bitcoin, Ethereum, and Ripple continued their corrections on Friday, posting weekly losses of nearly 6%, 3%, and 5%, respectively. BTC is nearing the November lows at $80,000, while ETH slips below $2,800 amid increasing downside pressure.