USD, JPY up on FlighttoSafety, EUR down on ECB

Note  The table above is updated before publication with the latest consensus forecasts. However, the text charts are prepared ahead of time. Therefore there can be discrepancies between the forecasts given in the table above and in the text charts. 

Rates as of 0400 GMT

Market Recap

I had expected the European Central Bank ECB to signal some sort of easing measures at its December meeting, but I didnt expect them to basically stand up on the table and shout it through a megaphone. Well, at least the central bank equivalent of that. 

Although they kept all their rates policy measures unchanged,  the statement released immediately following the meeting said that the risks are clearly pointed to the downside. The new economic forecasts that the ECB staff will produce for the December meeting will allow a thorough reassessment of the economic outlook. The Governing Council will accordingly recalibrate its instruments, as appropriate, to respond to the unfolding pandemicsituation and to ensure that financing conditions remain favourable to support the economic recovery and counteract the negative impact of the pandemic on the projected inflation path. Thats as clear a promise as youre going to get from a central bank. 

In the press conference, ECB President Lagarde noted a clear deterioration in the outlook as the European economy is losing momentum more rapidly than expected. She stressed that the decision was unanimous that action will be needed and that…

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published.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

More in:News