- Analytics
- News and Tools
- Market News
- EUR/USD to accelerate through 1.11 – SocGen
EUR/USD to accelerate through 1.11 – SocGen
Economists at Société Générale discuss the European Central Bbank (ECB) interest rate decision and its implications for the EUR/USD pair.
Hawkish 25 bps or dovish 50 bps?
“Our house call was for the ECB to hike by 50 bps, but the combo of below-forecast 1Q GDP growth (0.1% QoQ), a decline in core inflation to 5.6% in April (services up 0.1pp), tightening in ECB bank lending conditions and lower demand for loans tilted the scales in favour of a (hawkish) 25 bps.”
“Guidance in the statement and by President Lagarde that the tightening cycle is not over in theory should be conducive to the EUR/USD overcoming the April high of 1.1095 and having a go at 1.11 when the large option expiry rolls off and delta hedging flows subside.”
“Upside for rates could be limited if investors opt for the safety of govies and receiving in swaps in the face of banking and debt ceiling jitters in the US.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
