ECB decision depends on data

Note: This section contains information in English only.
Source: Dukascopy Bank SA


European Central Bank's (ECB) upcoming Thursday's policy meeting will include the announcement of the Euro's base interest rate, the Main refinancing rate. It will affect all the EU and rest of financial markets as well. In general, the markets expect a rate cut, as slow European growth forecasts suggest that there is a need for capital cost reduction.

Meanwhile, the ECB rate cut may signal an upcoming recession in the upcoming quarters, if cuts are more significant than necessary for a simple capital cost reduction. Unexpected "Dovish cuts" are a possibility as European Economic Sentiment in the EU and in the Euro Zone are not convincing that the future of the economy is set to be bright. However, argument of deeper cuts can be considered, when looking at current long term inflation data.

Currently, inflation levels of Euro area for August 2024 have reached 2.2% percent (Highest Belgium, 4.5%, Lowest Lithuania 0.7%). The 2.2% is the lowest inflation percentage that has been observed for a while, which has restored the central planner's credibility of "taming the inflation, that occurred after the fiscal stimulus done during the COVID period.

Either way, market consensus suggests that the most unlikely scenario is that rates will be unchanged or raised. The decision is dependent on future inflation forecasts, and the strength of the economy in the Euro area.
Back to articles

Actual Topics

Tue, 10 Sep 2024 12:03:57 GMT

Oracle stock jumps due to earnings

The stock price of Oracle is set to start Tuesday's trading with a jump of $11.00 or 7.90%. The reason for the gap up are the quarterly financial results and future expectations. Quarterly earnings per share are $1.39 instead of forecast $1.332. Meanwhile, the total revenues were 0.56% above expected. Moreover, the company expects its income to continue to grow, as

Wed, 04 Sep 2024 13:30:52 GMT

Nvidia extends decline

US tech stocks declined on Tuesday, as a major sell-off occurred that was attributed to various reasons. Some quoted the start of a new month as the reason for the sell-off. Some blamed the lack of earnings in the tech sector. Meanwhile, others shorted the major head and shoulder pattern that was seen on all stock indices. The biggest looser

Subscribe to "Fundamental Analysis" feed

Suscribir
Para conocer más sobre la plataforma de Trading de CFD y Forex de Dukascopy Bank, SWFX y otras informaciones relacionadas con el Trading,
llámenos o haga una solicitud de devolución de llamada.
Para obtener más información sobre la posible cooperación, por favor llámenos o haga una solicitud de devolución de llamada.
Para obtener más información sobre las opciones binarias de Dukascopy Bank / La plataforma de operaciones de Forex, SWFX y otra información relacionada con el Trading, por favor llámenos o solicite una devolución de llamada.
Para conocer más sobre la plataforma de Trading de CFD y Forex de Dukascopy Bank, SWFX y otras informaciones relacionadas con el Trading,
llámenos o haga una solicitud de devolución de llamada.
Para obtener más información acerca de la plataforma de operaciones Crypto Trading / CFD / Forex, SWFX y otra información relacionada con el comercio,
llámenos o realice una solicitud de devolución de llamada.
Para obtener más información sobre Business Introducer y otra información relacionada con el comercio,
llámenos o realice una solicitud de devolución de llamada.
Para obtener más información sobre la posible cooperación, por favor llámenos o haga una solicitud de devolución de llamada.