Select Language

ECB's Kazimir: US tariffs already factored into worse scenarios

blockHeadVisual
  1. HOME
  2. Get information
  3. World FX news
  4. ECB's Kazimir: US tariffs already factored into worse scenarios

World FX news

search
Breaking news

ECB's Kazimir: US tariffs already factored into worse scenarios

  • X
  • facebook
  • LINE
  • RSS
  • X
  • facebook
  • LINE
  • RSS
New update 2025.04.03 23:53
ECB's Kazimir: US tariffs already factored into worse scenarios

update 2025.04.03 23:53

European Central Bank (ECB) board member Peter Kazimir said on Thursday that the United States' tariffs, to a large extent, are already factored into their forecasts among the worse scenarios that they must brace for, per Reuters.

"We need to see the European Union's response. Nevertheless, this is not good news for the economy," he added.

Market reaction

EUR/USD preserves its bullish momentum following these remarks. At the time of press, the pair was trading at 1.1115, where it was up 2.4% on a daily basis.

ECB FAQs

The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.

In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets - usually government or corporate bonds - from banks and other financial institutions. QE usually results in a weaker Euro. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The ECB used it during the Great Financial Crisis in 2009-11, in 2015 when inflation remained stubbornly low, as well as during the covid pandemic.

Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the European Central Bank (ECB) purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the ECB stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive (or bullish) for the Euro.

Date

Created

 : 2025.04.03

Update

Last updated

 : 2025.04.03

Related articles

Show more

Writer

FXStreet

Financial media

arrow
FXStreet

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.

Was this article helpful?
No loading Yes loading

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].

Thank you for your feedback.
Thank you for your feedback.

Previous article

prev

Silver Price Forecast: XAG/USD nosedives below $32 on "Buy the Rumour Sell the News"

Next article

EUR/USD Price Analysis: Bulls extend control as EUR/USD breaks above 1.1100

prev

Most viewed

USD/CNH: Set to weaken to 7.2430 before stabilisation can be expected - UOB Group

Scope for US Dollar (USD) to weaken to 7.2430 before stabilisation can be expected vs Chinese Yuan (CNH); it is unclear if 7.2150 will come into view.
New
update2025.04.04 20:48

China Finance Ministry: Will impose additional 34% tariffs on all US goods from April 10

China's Finance Ministry announced on Friday that they will impose additional tariffs of 34% on all US imports from April 10 in response to US President Donald Trump's latest tariff announcements, per Reuters.
New
update2025.04.04 20:42

Brent: Next objectives are located at $65.50/64.70 and $63 - Societe Generale

Brent has pulled back after facing strong resistance around the 200-DMA ($76) recently, Societe Generale's FX analysts report.
New
update2025.04.04 20:40

USD/JPY: Below 145.00, further decline is likely- UOB Group

US Dollar (USD) is likely to trade in a 145.20/147.50 range vs Japanese Yen (JPY). In the longer run, too early to expect weakness to stabilise, but USD must break and hold below 145.00 before further decline is likely, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
update2025.04.04 20:35

EUR/GBP: Above 0.8510/0.8530, a larger upside is likely - Societe Generale

EUR/GBP has crossed above the 200-DMA resulting in a steep up move, Societe Generale's FX analysts report.
New
update2025.04.04 20:31

NZD/USD must close above 0.5850 for further sustained rise - UOB Group

New Zealand Dollar (NZD) is likely to trade in a range between 0.5720 and 0.5850 vs US Dollar (USD). In the longer run, for further sustained rise, NZD must close above 0.5850, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
update2025.04.04 20:14

Copper slumps as tariffs threaten global growth outlook - ING

Copper and other industrial metals slumped on Thursday amid concerns about how Trump's latest tariffs threaten the global growth outlook, ING's commodity analysts Warren Patterson and Ewa Manthey note.
New
update2025.04.04 20:07

US Dollar recovers some of previous losses with all eyes on NFP and Powell speech

The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, is trying to recover while trading around 102.50 at the time of writing on Friday. The dust is settling on United States (US) President Donald Trump's reciprocal tariffs.
New
update2025.04.04 20:04

AUD/USD: Above 0.6410, further advances can be expected - UOB Group

Instead of continuing to rise, AUD is more likely to trade in a 0.6260/0.6360 range. In the longer run, AUD must break and hold above the significant resistance at 0.6410 before further advances can be expected, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
update2025.04.04 19:58

USD/CAD Price Forecast: Bounces back from 200-day EMA

The USD/CAD pair rebounds to near 1.4160 during European trading hours on Friday from an almost four-month low of 1.4026 posted on Thursday.
New
update2025.04.04 19:43

Disclaimer:arw

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.

arw
  • Facebook
  • Twitter
  • LINE

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

I agree
share
Share
Line

Line
Facebook

Facebook
X

Twitter
Cancel