The ECB Governing Council: Rate Hike or Status Quo, with a Watchful Eye on US Retail Sales and PPI
The international markets ahead are brimming with significant events. Of particular importance to the Euro exchange rate is the ECB Governing Council’s announcement regarding monetary policy. Currently, the expectations for a status quo decision and a 25-basis-point rate hike are quite evenly balanced. Economist predictions seem to slightly favor the status quo camp. On the […]
Dollar Buying, Tokyo Market Led by AUD Selling, Euro Focus in European Session with Numerous Speeches
The Tokyo market is generally characterized by dollar buying pressure. With the rise in US bond yields, USD/JPY has climbed from around 146.40 to near 147 yen. Another significant move was observed in AUD/USD, which dropped from around 0.6460 to near 0.6380. Factors such as the deterioration of China’s Caixin PMI and the Reserve Bank […]
US FOMC, ECB, Bank of Japan Monetary Policy Announcement next week
This week has seen a strengthening in USD, but the reasons behind its rally are questionable. There seems to be a correction in the market after a continuous 6-day USD decline until last week. Various factors are influencing the market sentiment. For USDJPY, BOJ Governor Kuroda’s reaffirmation of the easing stance cooled down the YCC […]
JPY on the brink of a widening US-Japan interest rate gap, but what about the ECB Council meeting?
The Japanese yen has weakened in the Tokyo market following the passage of yesterday’s US Federal Open Market Committee (FOMC) meeting. USD/JPY has reached the 141 yen level, which raises concerns about the government’s warning against excessive yen weakness. The FOMC meeting resulted in no change in policy interest rates as expected, but the indication […]
June FOMC Expected to Stay Unchanged, But Still Fluid Ahead of US Employment Data
Yesterday, market sentiment shifted towards a majority expectation of the June FOMC remaining unchanged. This change was in response to the support for holding off on rate hikes from a Jefferson Fed Board member and the President of the Philadelphia Federal Reserve, Harker. Prominent Fed watchers had also indicated a possibility of no rate hike. […]
How will today’s ECB fare as the How will today’s ECB fare as the US FOMC’s rate hike pause approaches?’s rate hike pause approaches?
As expected by the market, yesterday’s US FOMC announced a 25bp rate hike. However, while it suggested the possibility of keeping rates unchanged (pausing rate hikes) at the next June meeting, it did not explicitly say so. Chairman Powell denied the speculation of an early start to rate cuts that had been spreading in […]
what is the credit criteria in bank lending survey from the European Central Bank (ECB)?
The credit criteria in the bank lending survey from the European Central Bank (ECB) are an important indicator for forex traders, as they provide insights into the lending environment within the Eurozone. The survey assesses the lending standards applied by banks, which include the requirements and conditions that borrowers must meet to qualify for a […]
What is ECB?
The ECB, or European Central Bank, is the central bank for the euro and administers the monetary policy of the 19 European Union (EU) countries that have adopted the euro as their official currency. These countries are collectively known as the Eurozone. Established in 1998, the ECB is headquartered in Frankfurt, Germany, and is one […]
What about the ECB Governing Council raising interest rates by 50bp at the timing of financial instability?
Today’s announcement of the results of the ECB Governing Council has attracted more attention than usual. Deep-rooted inflation is observed in Europe, and measures to curb inflation are urgently needed. The hawkish members’ calls for a 75 basis point hike were quelled by Lagarde’s message of a series of 50 basis point hikes. However, the […]
The US, UK, and European central bank events have passed, and the US employment statistics are announced today
This week is full of notable events. The monetary policy announcements of the US, UK, and European central banks have passed without incident. The US FOMC hiked interest rates by 25bp, while the UK MPC and ECB hiked by 50bp each, in line with market expectations. Despite the nervous price movements, there seems to be […]