Inflation Risks Return To The Markets
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!
How to trade EUR after the ECB rate statement?
The European Central Bank will publish the main refinancing rate and make a statement on Thursday, June 4, at 14:45 MT time. Also, the ECB press conference will be later at 15:30 MT time.
Instruments to trade: EUR/USD, EUR/CAD, EUR/GBP, EUR/JPY, EUR/NZD, EUR/AUD, EUR/CHF
Analysts give 99% that the main refinancing rate will stay unchanged. Traders should focus on the ECB statement and the press conference. The central bank will reveal the market overview and give its forecast. It’s important what officials think about the future recovery as it will drive EUR. The central bank’s main weakness is a risky nature of its debt. However, the ECB with Merkel and Macron tackled it and unleashed a 750 billion-euro emergency asset-purchase program with 500 billion as grants and the rest as loans. It helped to prevent borrowing costs from going out of control. Economists expect the program to be topped up.
If the ECB leaves everything unchanged or expands quantitative easing, EUR may fall.
If the ECB increases the size of the pandemic emergency purchase program (PEPP) or targeted longer term refinancing operations (LTRO), EUR can rise.
Similar
Markets ahead of the CPI Release
Good Wednesday, dear traders! Let’s look at the main news ahead of the main event that will shake the markets: the release of US CPI at 15:30 GMT+3!
Can Gold Fall This Much?
Be ready to trade like never before, as this week may turn the market upside down. US CPI, EU Interest Rate, and many news to follow. Here’s what we have:
Latest news
News for The Week
US stock markets started falling, while the US dollar is rising. What to expect from
Inflation Is in Focus Again
Oil prices are rising and Russia banned the export of its petrol. What's happening in the markets?
Fed’s Rate Pause and UK Inflation Slows
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%.
