- Analytics
- News and Tools
- Market News
- EUR to come under pressure if the Eurosystem withdraws as a buyer of government bonds – Commerzbank
EUR to come under pressure if the Eurosystem withdraws as a buyer of government bonds – Commerzbank
The ECB holds its regular monetary policy meeting today. The actual rate decision is unlikely to provide much of a surprise, economists at Commerzbank report.
ECB widely expected to keep rates on hold
All 51 economists polled by Bloomberg – just like our economists – expect unchanged rates.
There were some officials who were considering an early end to the PEPP reinvestments – at present, this is projected for late 2024. At first glance, it might not make that much sense why this would be relevant for the Euro. However, concerns regarding national finances have been on the rise globally. If the Eurosystem increasingly withdraws as a buyer of government bonds, that is likely to intensify the problems that would affect the EUR. In view of these issues, the ECB will probably want to avoid a premature decision.
There is a lot to suggest that the ECB meeting will be much quieter than was the case over the past months. That does not mean though that individual statements at the press conference will not cause increased volatility, as the ECB provided some surprises every so often over the past months that came unexpected to most market participants.
© 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
