No Result
View All Result
Saturday, September 23, 2023
  • Login
FXVNPRo
ADVERTISEMENT
  • Home
    • Advertising Promotion
    • Economic Calendar
    • Contact Us
  • Forex Brokers Review
    • Best Brokers 2023
  • Learn To Trade
    • Forex Trading Strategies
    • Forex Trading Indicators
    • Promotional Content
    • Forex/CFDs/Cryptos News
  • Forex Promotions
    • Best Promotions
    • Forex No Deposit Bonus
    • Forex Demo Contest
    • Forex Cashback Rebate
    • Forex Deposit Bonus
    • Forex Live Contest
    • Affiliate Program
    • Other Promotions
  • Expert Advisors
    • Expert Advisors Price
  • Rebate Service
    • Rebate Services Terms and Conditions
No Result
View All Result
  • Home
    • Advertising Promotion
    • Economic Calendar
    • Contact Us
  • Forex Brokers Review
    • Best Brokers 2023
  • Learn To Trade
    • Forex Trading Strategies
    • Forex Trading Indicators
    • Promotional Content
    • Forex/CFDs/Cryptos News
  • Forex Promotions
    • Best Promotions
    • Forex No Deposit Bonus
    • Forex Demo Contest
    • Forex Cashback Rebate
    • Forex Deposit Bonus
    • Forex Live Contest
    • Affiliate Program
    • Other Promotions
  • Expert Advisors
    • Expert Advisors Price
  • Rebate Service
    • Rebate Services Terms and Conditions
No Result
View All Result
FXVNPRo
No Result
View All Result
Home Forex/CFDs/Cryptos News

ECB fails to reassure investors and weakens the euro

fxvnpro by fxvnpro
May 5, 2023
in Forex/CFDs/Cryptos News
0
ForexNews
0
SHARES
2
VIEWS

HYCM

Going into the ECB meeting there was already a high bar set in terms of expectations. Christine Lagarde had signaled a 25 bps hike in July and in September before the meeting. So, when the ECB announced a 25 bps hike in July there was no surprise. The ECB also announced an end to the APP programme as of July 1. This was expected. However, the meeting did hole two more bullish elements that may have been expected to lift the euro.

The euro reaction was surprising on balance

The statement did signal that a potentially larger rate hike may be appropriate in September. This, on balance, was a more hawkish response, especially as the ECB also revised higher their inflation forecasts:

  • 2022 at 6.8% vs 5.1% previous.
  • 2023 at 3.5% vs 2.1% previous.
  • 2024 at 2.1% vs 1.9% previous.

These projections show that inflation is presenting more of a problem to the ECB than they had previously projected. Christine Lagarde stated as much in the opening statement of her press conference that high inflation is a major challenge. Christine Lagarde also linked high inflation forecasts with rate hikes larger than 25 bps when she said ‘if projections put 2024 inflation at 2.1% or higher’ the rate rise will be larger than 25bps.

So why the selling?

The best explanations of the euro selling can be put into three factors: the STIR markets pricing is too aggressive, the prospect of slowing eurozone growth, the risk of fragmentation due to highly indebted countries like Italy and Greece.

The strategist for TD bank told his clients to sell the EURUSD as market pricing would mean one 75 bps rate hike and two 50 bps rate hikes in the remaining four meetings. This is a good point and makes it less likely the ECB can deliver such an aggressive Arte hike.

The risk to eurozone growth is self-evident with the Russian crisis ongoing and energy prices continuing to add strain.

The risk of fragmentation is high as demonstrated by the BTP-Bund spread. The BTP-Bund spread is simply the difference between the yield difference of an Italian 10-year bond and a German bond. The spread is important due to the different risk factors. German bonds are relatively safe compared to the more indebted Italian nation bond. So, the spread acts as a risk premium on the eurozone. In other words, the spread rises higher when euro risk is deemed to be rising too. You can see that when the spread moves higher it often leads to euro weakness.

HYCM

When this spread rises it shows investors worrying over rising debt risk in the region. Countries like Italy are vulnerable to higher debt costs, so the risk premium is starting to show.

Will this weakness persist?

The outlook for the euro is unclear, but the Fed should offer a fresh direction on Wednesday this week. The key levels are marked below on the EURUSD chart.

HYCM

Source: Giles Coghlan LLB, Lth, MA – HYCM

Read Ichimoku cloud analysis: AUD/USD, XAG/USD, GBP/USD

Post Views: 305

Related posts:

ForexNewsChina: Big plans to boost growth ForexNewsFOMC minutes to lift the S&P 500? [Video] ForexNewsChina’s sentiment boost ForexNewsThe Fed to set gold surging? [Video] HYCMSNB takes on a new role as inflation buster MarketNewsWhat’s driving gold pricing right now? [Video] FXStreetGas tax reduction doesn’t help [Video] FXStreetEURUSD Forecast / EURCHF Outlook / Natural rates
Tags: ECB fails to reassure investorsECB meetingeuro reactionForex NewsHYCM
exness
Previous Post

The everything – Except USD and oil, selloff [Video]

Next Post

Ichimoku cloud analysis: AUD/USD, XAG/USD, GBP/USD

fxvnpro

fxvnpro

Next Post
ForexNews

Ichimoku cloud analysis: AUD/USD, XAG/USD, GBP/USD

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

XM
  • Trending
  • Comments
  • Latest
Technical Analysis

Technical Analysis – Price Action Trading (Part 1)

May 22, 2022
Technical Analysis

Technical Analysis – Price Action Trading (Part 3)

May 22, 2022
Technical Analysis

Technical Analysis – Price Action Trading (Part 2)

May 29, 2022
ForexNews

Insiders say LUNA Classic has no future but remain optimistic on Terra’s LUNA 2.0 price

June 7, 2022
MiTRADE

Forex Brokers Types: ECN VS Market Makers VS No Dealing Desk

101
Tiomarkets

MT4 vs MT5: What trading platform to choose?

94
FPMarkets

What is Forex Trading? (Part 2)

61
CMC Markets

What Is Bitcoin?

56
PRC Broker

Review PRC Broker

September 22, 2023
Tickmill-How-to-Claim-30-Forex-Welcome-Bonus

Tickmill How to Claim $30 Forex Welcome Bonus

September 22, 2023
Selecting the Best Gold Trading Broker

Selecting the Best Gold Trading Broker

September 19, 2023
Choosing Forex Brokers with Bonuses

Choosing Forex Brokers with Bonuses

September 19, 2023

Recent News

PRC Broker

Review PRC Broker

September 22, 2023
Tickmill-How-to-Claim-30-Forex-Welcome-Bonus

Tickmill How to Claim $30 Forex Welcome Bonus

September 22, 2023
Selecting the Best Gold Trading Broker

Selecting the Best Gold Trading Broker

September 19, 2023
Choosing Forex Brokers with Bonuses

Choosing Forex Brokers with Bonuses

September 19, 2023

Advertisement

fbs



icmarkets

Connect to FXVNPRo

facebook twitter telegram

Now online

FXVNPRo

FXVNPRo Information

Address: Ho Chi Minh City, Vietnam, 70000

Contact us:
– Skype: fxvnpro
– Email:

admin@fxvnpro.com

fxvnpro@gmail.com

Payment methods:
– Webmoney
– Perfect Money
– Paypal
– Skrill
– Neteller
– Bank Wire
– Bitcoin

Disclaimer

Any promotions, reviews, and other information in the website are just for the information purpose only.

There is no invitation or encouragement to invest in the Financial Markets such as CFDs, Forex, Binary Options, Indices, Cryptocurrencies and so on. We disclaim liability for any loss resulting from the use of information contained on this website.

The published comments are private opinions or feedback of the users. FXVNPRo is not responsible for any information on the website.

Risk warning

Please be aware of your investment into trading markets which is high risk and not suitable for everyone.

Recent Posts

  • Review PRC Broker
  • Tickmill How to Claim $30 Forex Welcome Bonus
  • Selecting the Best Gold Trading Broker
  • Choosing Forex Brokers with Bonuses
  • Selecting the Best Forex Rebate Provider
  • Review PU Prime
  • Review One Global Market
  • Review NSFX Ltd.
  • What is a No Deposit Forex Bonus and How to Get It
  • August Month Offer For Traders | Orbit Global FX
  • FX daily: European pessimism, Chinese optimism
  • Review Orbit Global FX
  • NZD/USD: A Stellar Week as US Dollar Retreats
  • Losable Bonus | MogaFX
  • Cashback Bonus | MogaFX

© 2013 - 2023 FXVNPRo - Forex Rebates Service | Forex Expert Advisors | Forex Brokers Review | Forex Promotions - News.

No Result
View All Result
  • Home
    • Advertising Promotion
    • Brokers Listing
    • Economic Calendar
    • Contact Us
  • Forex Brokers Review
  • Learn To Trade
    • Promotional Content
    • Forex/CFDs/Cryptos News
  • Expert Advisors
    • Expert Advisors Price
  • Forex Promotions
    • Best Promotions
    • Forex Demo Contest
    • Forex No Deposit Bonus
    • Forex Cashback Rebate
    • Affiliate Program
    • Forex Deposit Bonus
    • Forex Live Contest
    • Other Promotions

© 2013 - 2023 FXVNPRo - Forex Rebates Service | Forex Expert Advisors | Forex Brokers Review | Forex Promotions - News.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Warning: array_sum() expects parameter 1 to be array, null given in /home/betbonus/fxvnpro.com/wp-content/plugins/jnews-social-share/class.jnews-social-background-process.php on line 111