Created
: 2024.09.16
2024.09.16 19:31
The Euro (EUR) retraced early week's losses to end the week flat, OCBC's FX strategists Frances Cheung and Christopher Wong note.
"Lack of ECB dovishness and broad USD weakness were some of the factors underpinning EUR's late comeback for the week. A day later, she told reporters that ECB is open to considering a rate cut in October if the economy suffers a major setback though the next comprehensive set of information will only be available at the following meeting (which is December). Banque de France's Villeroy added that the pace has to be highly pragmatic and that policymakers are not pre-committing to any particular rate path, and they keep their full optionality for next meetings."
"Other ECB officials also chimed in: 1/ Simkus said that policymakers will need strategic patience as they plot the course ahead and services inflation, wage dynamics are the key uncertainties; 2/ Holzmann said there could be room for another 25bp cut in Dec meeting; 3/ Kazaks said that a cut can be considered if economy feels significantly weaker than is currently expected and inflation also significantly declines; 4/ Rehn said that growth remains slow in the euro-area and downside risks to growth have increased over the summer."
"On net, the focus is on growth. If growth momentum decelerates significantly, then rate cut cycle may pick up pace. But as of now, there is no rush and ECB prefers to maintain full optionality. On this note, ECB's no rush to ease vs. greater room for Fed to ease may be supportive of EUR upside. Bearish momentum on daily chart shows signs of fading while RSI rose. Risks are slightly skewed to the upside for now. Resistance here at 1.1140 and 1.12 levels. Support at 1.1010, 1.0970 (50-DMA, 38.2% fibo retracement of 2024 low to high)."
Created
: 2024.09.16
Last updated
: 2024.09.16
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy