- Analytics
- News and Tools
- Market News
- EUR: Dovish ECB could weigh on EUR/USD – ING
EUR: Dovish ECB could weigh on EUR/USD – ING
It is a busy day for the European calendar dominated by GDP releases and the ECB meeting. France has just released a weaker-than-expected fourth-quarter GDP reading of -0.1% QoQ. Consumption and business investment were the weak links, ING's FX analyst Chris Turner notes.
Downside risks to EUR/USD are evident
"Remember, the threat of trade tariffs is normally a negative for business investment – something the IMF has modelled. Let's see how the German and Italian numbers fare at 10CET and then the provisional eurozone release at 11CET. Here the consensus for eurozone fourth-quarter growth currently stands at 0.1% QoQ, with seemingly downside risks."
"Today's main event, however, is the ECB meeting – rate announcement 1415CET. A 25bp cut in the deposit rate to 2.75% is nailed on and instead the focus will be on ECB President Christine Lagarde's press conference. We see some downside risks if the market believes there is a chance of the ECB taking policy below neutral."
"EUR/USD should be driven by events in Europe today, with a slight bias to the 1.0345/55 area should Lagarde sound quite dovish."
© 2000-2025. 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.
