FOREX
The euro hedged up in relation to the dollar and other major currencies during early Thursday trading. Traders are looking ahead to the European Central Bank rate decision, subsequent statements, and press conference, which will happen later today. Of course, no rate changes are expected, and the focus will be on the policy statement and press conference instead. Against this background, what will move the single currency today will be the degree to which Christine Lagarde pushes back against market expectations. With economic conditions deteriorating in the old continent and inflation rates falling quicker than many had expected, the markets have already priced in 130 basis points of cuts in 2024. The stronger the pushback, the more the euro is likely to gain. On the other hand, should ECB officials yield to pressure and adopt a tone seen as dovish, the single currency may end up losing ground to its peers.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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