The Euro has received a welcome boost from this week’s surprisingly strong Euro Area economic figures.
The latest GDP report showed an encouraging bounce in activity in Q3, with the bloc’s economy unexpectedly posting its fastest pace of expansion in two years in the three months to September.
Inflation also rebounded off its more than three-year lows in October, even if partly a byproduct of the base effect, now that last year’s drop in energy prices is no longer taken into account in the calculation.
We think that the news may incentivise the European Central Bank to adopt a less aggressive approach to lower rates at its upcoming policy meetings.
Any lingering speculation surrounding the slim possibility of a giant-sized 50 basis point cut from the ECB in December is likely to be well and truly silenced. Another ‘standard’ 25bp move still looks firmly on the cards for the next meeting, but the ECB may be reluctant to sound overly dovish in its upcoming communications, instead opting for an approach that relies solely on data-dependence.
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
AUD/USD: Next on the downside comes 0.6500
Further gains in the US Dollar kept the price action in commodities and the risk complex depressed on Tuesday, motivating AUD/USD to come close to the rea of the November low near 0.6500.
EUR/USD: No respite to the sell-off ahead of US CPI
The rally in the Greenback remained well and sound for yet another session, weighing on the risk-linked assets and sending EUR/USD to new 2024 lows in the vicinity of 1.0590 prior to key US data releases.
Gold struggles to retain the $2,600 mark
Following the early breakdown of the key $2,600 mark, prices of Gold now manages to regain some composure and reclaim the $2,600 level and beyond amidst the persistent move higher in the US Dollar and the rebound in US yields.
SOL Price Forecast: Solana bulls maintain $250 target as Binance lists ACT and PNUT
Solana price retraced 7% from $225 to $205 on Tuesday, halting a seven-day winning streak that saw SOL become the third-largest cryptocurrency by market capitalization.
Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out Premium
What a week – the US election lived up to their hype, at least when it comes to market volatility. There is no time to rest, with politics, geopolitics, and economic data promising more volatility ahead.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.