The Reserve Bank of New Zealand made announcements regarding its monetary policy. The NZD/USD dropped.
Euro reaches 2019 minimums
On Thursday, European markets went down because the ECB’s attempts to regain flagging surge in the region focused attention on a steep deceleration in surge.
Versus the evergreen buck, the common currency dived to its lowest value of 2019. The gain on German 10-year bonds went down to its lowest value since 2016. The STOXX 600 found itself on track for its worst day in February. Italian 10-year gains reached their lowest value since May, when Italy’s populist cabinet was preparing to assume power.
The currency pair EUR/USD reached a session minimum of 1.1228, which is the weakest outcome since November 13.
The EU’s major bank not only reduced its 2019 surge estimate for the euro zone from 1.7% to 1.1%, but it also uncovered another round of low-cost loans to financial institutions and also pushed back the timeline for what would be its first interest rate lift for almost a decade.
Moreover, the ECB told that it currently expects a 1.6% leap next year, down from 1.7%. As for the forecast for 2021, it’s still intact, showing 1.5%.
Draghi told that this year’s surge forecast had been updated downwards considerably due to the fact the euro zone is facing ongoing weakness as well as pervasive uncertainty.
This year, the ECB had its inflation estimates slashed to 1.2%, down from December’s outcome of 1.8% and also to 1.5% in 2020, down from 1.6%. Moreover, for 2021, the ECB sees inflation at about 1.6%.
Meanwhile, the common currency could decrease to $1.10 by the end of March, as some financial analysts guess.
By the way, the EU’s key bank left its key main refinancing rate on hold as anticipated. The refinancing rate determines the cost of credit in the economy.
The US CPI and core CPI are due at 15:30 MT time on May 12.
April seasonal patterns weren’t supposed to work, but somehow they did. Even a strong fundamental issue such as the global recession amid the coronavirus couldn’t overwhelm it. That’s why May seasonal patterns may work as well.
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