- Analytics
- News and Tools
- Market News
- Euro to correct lower if ECB signals a possible rate cut in April – MUFG
Euro to correct lower if ECB signals a possible rate cut in April – MUFG
EUR/USD has surged above 1.0900 ahead of today’s ECB policy meeting. Economists at MUFG Bank analyze Euro’s outlook.
Will the ECB indicate that rate cuts are moving closer?
We are expecting the ECB to indicate that they are moving closer to cutting rates at today’s policy meeting although the timing of the first rate cut is unlikely to be as soon as at the following policy meeting in April. Recent comments from ECB officials have indicated that a June rate cut is emerging as the most likely scenario. It would give the ECB more time to assess if wage growth has continued to slow at the start of this year.
For the Euro to correct lower today, the ECB would have to encourage market participants to price in a higher probability of an April rate cut. One potential catalyst would be a downgrade to the ECB staff forecasts for inflation.
© 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
