Equityworld Futures Portal News
Dollar set to pounce on euro if ECB offers dovish guidance
Thursday, 30 January 2025 08:10 WIB | EUR/USD |DOLLAR
Dollar bulls were ready to pounce on the euro on Thursday should the European Central Bank sound dovish on rates later in the day, given the Federal Reserve had pressed the pause button on its easing cycle overnight
Markets are more than fully priced for the ECB to trim rates by 25 basis points to 2.75% later on Thursday, with even a small chance of 50 basis points given how weak the EU economy is.
"The euro area's inflationary pulse is evaporating, and the risk of a sustained inflation undershoot is material," warned analysts at ANZ.
"The complex economic and political challenges facing the euro area's largest economies increases the onus on the ECB to support growth."
This is one reason markets are priced for further cuts in March, April and June, with about 90 basis points of easing implied for 2025.
Source: Reuters
RELATED NEWS
EUR/USD Pressured As Fed Rate Decision Looms ...
Wednesday, 29 January 2025 17:11 WIB
EUR/USD traded cautiously near 1.0420 in the European session on Wednesday (29/1), with investors focused on the Federal Reserve's (Fed) monetary policy announcement at 19:00 GMT. The Fed is widely an...
EUR/USD Weakens Below Mid-1.0400s Amid Solid USD Demand ...
Tuesday, 28 January 2025 14:14 WIB
The EUR/USD pair extended its overnight modest retracement slide from the 1.0530-1.0535 region, or its highest level since December 17, and triggered a major follow-through sell-off during the Asian s...
EUR/USD strengthens on upbeat Eurozone flash PMI...
Saturday, 25 January 2025 04:27 WIB
EUR/USD rallies to near the psychological resistance of 1.0500 on Friday as the Hamburg Commercial Bank (HCOB) reported that the Eurozone preliminary Composite Purchasing Managers' Index (PMI) grew in...
