EUROPEAN SHARES
The euro edged down against the US dollar in early Friday trading, hovering just below 1.0900. After a couple of sessions in the red, the single currency gained some ground against the greenback on Thursday, following the ECB decision to cut rates by 0.25%, and comments made at the subsequent press conference. Until recently, markets had anticipated a more aggressive unwinding of the European Central Bank's restrictive monetary policy. However, much like in the US, the Eurozone's inflation has proven more challenging to bring down than predicted. As a result, markets have scaled back rate cut expectations, now anticipating only two, perhaps three, in 2024. This perception was reinforced by Christine Lagarde, who spoke after the announcement of the first ECB rate cut in this cycle. Lagarde was careful and measured, reiterating the need to remain alert and data-dependent, leaving observers with the impression that ECB officials will be cautious before cutting rates again.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.