Lagarde says difficult times have come, and the ECB raised the rate not to cause a recession but to stabilize prices. Read the report to learn the freshest news of the day!
ECB: packing presents for the euro traders
The European Central Bank will publish the last statement of the year on December 10, at 14:45 MT time. After that, at 15:30 MT time, the ECB President Christine Lagarde will hold a press conference.
Instruments to trade: EUR/USD, EUR/GBP, EUR/JPY
This year has been tough for the Eurozone. Massive lockdowns and coronavirus pandemic have damaged the economy roughly. Most policymakers and institutions agree that the ECB should boost its support. For example, the International Monetary Fund suggests that the European regulator needs to expand its asset purchases and consider the relaxation of Targeted Longer-Term Refinancing Operations (TLTROs) and even a rate cut. Though the news on vaccines' development is quite optimistic, these measures are necessary for the economy's stabilization. Given these views, it's particularly interesting to hear the comments by the ECB president Christine Lagarde on possible changes to monetary policy.
- If the ECB is optimistic, the euro will be boosted.
- In case of an alternative scenario, the euro will go down.
ECB is ready to take the decision about the key rate. What to expect from officials? Oil prices are high, and economy indicators demonstrate the slowing down in the strongest European economies.
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Today's main event for the markets is the FOMC Interest Rate Decision, where the US regulator is widely expected to keep the interest rate at the same level of 5.5%.
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