Reuters poll: ECB will cut the deposit rate to -0.60% in Quarter 1 2020 (vs A4 2019 in Sept poll).

ECB to end its latest asset purchase programme within 2-5 years -economists.
A 3-month forecast for EUR/USD is 1.0700 – 12-month forecast is 1.1200.

Ross J Burland FXStreet

In a Reuters poll, it is seen that the European Central Bank will cut the deposit rate to -0.60% in Quarter 1 2020 (vs A4 2019 in Sept poll).

Key notes:

ECB to end its latest asset purchase programme within 2-5 years -economists.
Euro zone inflation seen at 1.2% in 2019, 2020 (vs 1.3% in 2019, 2020 in sept poll).
latest ECB stimulus package will not significantly help bring inflation back to target - 95% of 65 economists.

FX implications:

The ECB is the key driver for the euro which is, however, on a northerly trajectory towards the 200-day moving average to the 1.12 handle. "Given the risks to global growth, we expect USD demand to remain well underpinned in the coming months," analysts at Rabobank explained – "That said we do expect some broad-based slippage in the USD next year based on our assumption of an aggressive step up in the pace of Fed rate cuts. Our 3 month forecast for EUR/USD is 1.07 and our 12 month forecast is 1.12."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD stays near 1.1650 with fading momentum

EUR/USD holds ground after five days of losses, trading around 1.1650 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 39 trends lower, confirming fading momentum rather than oversold conditions.

GBP/USD remains below 1.3450, nine-day EMA

GBP/USD remains subdued for the fourth consecutive day, trading around 1.3430 during the Asian hours on Friday. The momentum indicator 14-day Relative Strength Index at 51.9 is neutral, reflecting slower momentum after firm recent readings. An RSI drop back beneath 50 would strengthen the case for a deeper pullback.

Gold edges lower as USD preserves its recent gains ahead of US NFP report

Gold struggles to capitalize on the previous day's goodish rebound from the vicinity of the $4,400 mark and attracts fresh sellers during the Asian session on Friday. The US Dollar preserves its gains registered over the past two weeks and touches a nearly one-month high, undermining the commodity.

Bitcoin, Ethereum and Ripple find key support, reviving rally hopes

Bitcoin, Ethereum, and Ripple steadied above key support levels on Friday after being rejected at mid-week resistance zones. The short-term recovery prospects remain intact if the top three cryptocurrencies by market capitalization hold these support zones.

2026 economic outlook: Clear skies but don’t unfasten your seatbelts yet

Most years fade into the background as soon as a new one starts. Not 2025: a year of epochal shifts, in which the macroeconomy was the dog that did not bark. What to expect in 2026? The shocks of 2025 will not be undone, but neither will they be repeated.

Pepe Price Forecast: PEPE risks 100-day EMA fallout as bullish interest fades

Pepe is under extreme selling pressure, trading in the red for the fifth consecutive day, down 1% at press time on Friday. Pepe’s decline following a 72% hike last week suggests a likely profit-booking phase, while on-chain data indicates declining network activity.