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EUR/USD Daily Chart Analysis For Week of Jan 31, 2025Technical Analysis and Outlook: Following a successful retest of our Mean Resistance at 1.051, the Eurodollar has undergone a significant retracement to our Mean Support at 1.041. It is now positioned to approach the newly established Mean Support at 1.024. We anticipate that this downtrend will persist as it seeks to retest the Interim Inner Currency Dip, set at 1.020, in conjunction with Key Support at 1.024. However, this downward movement may also result in a temporary "dead-cat bounce," allowing the price action to prepare for the subsequent decline.
by TradeSelecter
MEMECOINS, ETFs, & CENTRAL BANK CLASHES $ETH $BTCMEMECOINS, ETFs, & CENTRAL BANK CLASHES 🪙🚀 1/8 Errol Musk’s “Musk It” memecoin wants to raise $200M for the Musk Institute—but it’s already down 52% since launch. Is this another flash in the pan, or can a Musk name (minus Elon) still spark 🚀 gains? 🍿 2/8 The token ($MUSKIT) trades at $0.02, market cap at $25M. Celebrity-themed memecoins often burn hot then fizzle—yet Trump’s memecoin success sets a precedent. Could Errol replicate it? 💸🌕 3/8 Big institutional move: The SEC just granted initial approval to Bitwise for a spot BTC/ETH ETF! Crypto goes mainstream. Allocations: 83% BTC and 17% ETH, mirroring market cap heft. 🏦💥 4/8 Following similar green lights for Hashdex & Franklin Templeton’s dual-crypto ETFs, institutional adoption is revving up under Trump’s crypto-friendly SEC. Is a new rally on the horizon? 🤔🚀 5/8 Meanwhile, ECB President Christine Lagarde slammed the idea of Bitcoin in central bank reserves. 🇪🇺🛑 “It’s gotta be liquid, secure, & safe,” she says—BTC isn’t up to snuff. But the Czech National Bank? They’re open to exploring “other asset classes.” 🏦🔎 6/8 This Euro divergence contrasts with the US, where Trump’s digital asset push is fueling crypto-friendly moves. Central banks are split—some see BTC as an opportunity, others call it too volatile. 🌍⚖️ 7/8 Which storyline will shape 2025 the most? A) Memecoin Frenzy 🤡 B) Spot ETFs 💡 C) Central Bank Debates 🏛️ Tell us! this is just the beginning… ⏳
BINANCE:BTCUSDLong
by DCAChampion
1
ECB Delivers Another 25 bp CutThe ECB (European Central Bank) continued policy normalisation today, with another 25 basis points (bps) worth of cuts across all three benchmark rates. This marks the fourth consecutive rate reduction, bringing the Deposit Facility Rate, the Refinancing Rate, and the Marginal Lending Facility Rate to 2.75%, 2.90%, and 3.15%, respectively. Frankly, I was not expecting fireworks from this week’s policy meeting. Unless I missed something, aside from Governing Council Member Robert Holzmann talking up a possible pause, most Members favoured further easing. However, one strikingly apparent fact we can garner from today’s meeting is that the ECB intends to continue lowering rates – quite a divergence from the wait-and-see approach the US Federal Reserve has adopted, and one that could weigh on the EUR/USD currency pair (euro versus the US dollar). The accompanying rate statement reiterated the central bank’s meeting-by-meeting approach and acknowledged that monetary policy remains in restrictive territory. This emphasises the possibility of further easing this year and aligns with market forecasts. As of writing, investors are pricing in another three 25 bp rate cuts, with a reduction on the table for the next meeting in March. Disinflation Process Well on Track The ECB appears content with the current progress on inflation, underscoring that the ‘disinflation process is well on track’ and that price pressures are ‘set to return to the Governing Council’s 2% medium-term target in the course of this year’. The CPI inflation (Consumer Price Index) report for December 2024 revealed an ‘expected’ uptick in the headline year-on-year (Y/Y) measure to 2.4% from 2.2% in November amid base effects; core Y/Y inflation held steady at 2.7%, and services inflation nudged higher to 4.0% from 3.9%. Economy Still Faces Headwinds Regarding GDP growth data (Gross Domestic Product), the ECB underscored that the ‘economy is still facing headwinds’ but believes a recovery will be seen over time, reinforced by ‘rising real incomes and the gradually fading effects of restrictive monetary policy’. During her press conference, ECB President Christine Lagarde emphasised that risks are ‘tilted to the downside’ for the eurozone economy and ‘is set to remain weak in the near term’. This follows GDP data showing the eurozone stagnated in Q4 24, recording 0.0% growth versus the market’s consensus of 0.1% expansion. We also saw contractions in GDP numbers from France and Germany. Consumer confidence is weighing on sentiment here, influenced by the possibility of a trade war escalation between Europe and the US. Lagarde noted: ‘Greater friction in global trade could weigh on euro area growth by dampening exports and weakening the global economy’. Downside Risks for EUR/USD; Parity Eyed I have highlighted in several posts the importance of where the EUR/USD is trading on the bigger picture. As evident from the monthly chart below, the currency pair is trending southbound and found resistance from the underside of the 50-month simple moving average (SMA) at US$1.0992 in Q4 24. Subsequently, further underperformance led price action south of support from US$1.0516, currently serving as possible resistance. If this level holds ground, parity calls for attention, closely shadowed by another layer of support at US$0.9873. Meanwhile, buyers and sellers have been squaring off around the 50-day SMA at US$1.0422 on the daily chart. This is a particularly interesting timeframe, as resistance around US$1.0536-US$1.0514 also recently entered the fight. As for current movement, trading appears difficult unless you are a fan of playing ranges (potentially between the 50-day SMA and the noted resistance area). Nevertheless, a breakout beyond current resistance could be a move larger traders fade from resistance at around the US$1.06 level for three primary reasons: the liquidity (buy stops tripped) above resistance at US$1.0536-US$1.0514, and, of course, the downtrend and monthly resistance in play at US$1.0516. Written by FP Markets Market Analyst Aaron Hill
Short
by FPMarkets
$EUNITR - Europe Interest Rates $EUNITR (January/2025) source: European Central Bank - The European Central Bank lowered its key interest rates by 25 bps in January 2025, as expected, reducing the deposit facility rate to 2.75%, the main refinancing rate to 2.90%, and the marginal lending rate to 3.15%. This move reflects the ECB’s updated inflation outlook, with price pressures easing in line with projections. While domestic inflation remains elevated due to delayed wage and price adjustments, wage growth is moderating, and corporate profits are absorbing some inflationary effects. Despite persistent tight financing conditions, the rate cut is expected to gradually ease borrowing costs for firms and households. The ECB remains data-driven and has not committed to a predetermined rate path, emphasizing a cautious approach to ensuring inflation stabilizes at its 2% target.
ECONOMICS:EUINTR
by Mr_J__fx
EURUSD - Will the dollar weakness stop?!The EURUSD currency pair is located above EMA200 and EMA50 on the 4-hour timeframe and is moving in its ascending channel. Maintaining the drawn ascending channel will lead to a continuation of the upward trend towards the channel ceiling. A correction of this currency pair towards the demand zone will provide us with its next opportunity to buy it. Donald Trump’s remarks about imposing 25% tariffs on imports from Canada and Mexico have sparked concerns among European companies. A report by Bank of America (BofA) highlights dozens of European firms that are vulnerable to these tariffs due to their supply chain dependencies and revenue exposure. Among these companies, the Italian automaker Stellantis stands out. According to the report, Stellantis operates 16 supply chain links in Canada and derives 47% of its total revenue from North America. Similarly, the German auto giant BMW has 18 supply chain links in Canada and generates 26% of its revenue from the United States. In the energy sector, the UK-based utility company National Grid, with a market value of €58 billion, has a significant presence in the U.S., where 50% of its assets and 54% of its revenue originate. Although its tangible supply chain exposure in Mexico and Canada is relatively low, its extensive operations in the U.S. make it highly susceptible to the negative impacts of these tariffs. Eurozone Bank Lending Survey – January 2025: • Credit Standards: In Q4 2024, corporate credit standards tightened due to rising perceived risks and reduced risk tolerance. • Mortgage Loans: Credit standards for household mortgages remained unchanged, but lending conditions for consumer credit tightened further. • Loan Demand: Mortgage loan demand surged significantly, while corporate loan demand remained weak. According to analysts at Standard Chartered, financial markets are currently overly focused on Donald Trump’s economic policies, potentially overlooking the risks associated with this week’s Federal Reserve meeting. The Federal Reserve is set to announce its latest interest rate decision today following a two-day meeting. It is widely expected that the interest rate will remain within the current range of 4.25% to 4.5%. However, investors are keen to find clues regarding the timing of future rate cuts. Based on market pricing, expectations suggest a 40-basis-point rate cut by December. A key unknown factor influencing this outlook is Donald Trump’s policies. He has recently called on the Fed to lower interest rates. Additionally, his tariff policies, which include imposing high tariffs on both allies and competitors, could further drive inflationary pressures. As a result, the Fed may proceed cautiously with its rate-cut cycle. However, Trump’s administration has not yet implemented widespread tariffs, though he has threatened to do so. Meanwhile, some Fed officials have recently signaled a more hawkish stance. There is also speculation that the Fed may seek to assert its independence at the beginning of Trump’s new presidential term by resisting his demands. If the Fed takes such a position, Trump may respond aggressively, which could further heighten market uncertainty.
Long
by Ali_PSND
SWING TRADE SETUP ON EURUSD We had a nice move to the upside yesterday following a shift on the 1H timeframe, Hope some of you were able to catch the move to the upside. If not there is another setup that I am looking at. This is a swing setup and if played out I expect for TP to be hit within the week. The main thing to keep in mind is that we have interest rate decisions for both the FED and ECB. Depending on how the numbers come out this setup will stay valid or EURUSD will break below the invalidation point and continue it's move to the down side. Good risk management is key with these news events.
by Keyserfx
Euro maintaining uptrend due to short-term dollar weakness The short-term dollar weakness is leading to a notable appreciation of the euro. Within the ECB, there are varying opinions regarding the future rate trajectory, but the prevailing sentiment strongly leans towards the necessity of further rate cuts. ING Group is confident that the ECB will cut interest rates by an additional 25bp at its monetary policy meeting this week and will pursue more gradual easing throughout the year. It’s also crucial to closely monitor Germany's 4Q GDP and Spain's January CPI results set to be released this week. Germany's GDP (QoQ) is projected to drop to -0.1% from 0.1% in the previous quarter, while the market anticipates Spain's January CPI to rise to 2.9% from 2.8% in the prior month. EURUSD broke below EMA21 and retreated to 1.0430. However, the price is still holding an uptrend, sustaining bullish momentum.If EURUSD breaks above EMA21 and the resistance at 1.0455, the price could gain upward momentum toward 1.0530. Conversely, if EURUSD breaks below the channel’s lower bound, the price could test the support at 1.0400.
by inkicho_exness
EURGBP - Euro is recovering!?The EURGBP pair is below the EMA200 and EMA50 on the 4-hour timeframe and is moving in its ascending channel. The pair’s continued rise towards the supply zone will provide a selling position with a good risk-reward ratio. In case of a downside correction, we can buy in the demand zone. The Eurozone composite PMI rose from 49.6 to 50.2. Although this figure exceeds expectations, it still reflects a stagnant economy with the manufacturing sector in recession. While price pressures are once again on the rise, it appears that weak growth remains the primary concern, as the European Central Bank (ECB) prepares for further interest rate cuts. In the manufacturing sector, the production index increased from 44.3 to 46.8, which still indicates contraction but at a slower pace. Meanwhile, the services sector, which remains the main driver of growth, saw a slight dip in business activity PMI from 51.6 to 51.4. Overall, the Eurozone economy appears to be hovering near stagnation. Economic growth continues to face challenges due to weak international demand. Export orders are still declining, and with U.S. tariffs on Eurozone manufacturing rising again, the outlook remains bleak. Interestingly, however, optimism among manufacturers improved in January, suggesting businesses are counting on growth recovery throughout the year. We believe this expectation is reasonable but mainly driven by stronger domestic demand. The ECB has been gradually lowering interest rates since June 2024, and this trend is expected to continue into 2025. ECB President Christine Lagarde reiterated this gradual approach during the Davos summit this week. However, some investors are hoping for a 0.5% rate cut in January’s meeting. This scenario, though, seems unlikely, as inflation in the services sector remains around 4%, and wage growth has reached its highest level in three decades. At the same time, concerns about the Eurozone’s economic growth have increased due to political unrest in France and Germany, declining exports linked to China’s weak economy, and the potential for new tariffs imposed by Donald Trump. Nevertheless, the situation is not severe enough to prompt the ECB to accelerate rate cuts. The ECB is expected to lower rates by 0.25% in Thursday’s meeting, with Lagarde likely sticking to her recent policy stance. Investors will be watching closely for new clues about any disagreements within the ECB’s Governing Council and policymakers’ views on the neutral rate. If Lagarde does not rule out the possibility of more aggressive rate cuts in the future, the euro could face downward pressure. A larger potential risk lies in new developments on the tariff front, especially if Trump makes statements about imposing trade restrictions on the EU. Additionally, Thursday’s initial GDP estimate for Q4 2024 in the Eurozone could trigger market reactions. These figures could significantly influence market expectations and the euro’s trajectory.
Short
by Ali_PSND
EUR/USD Daily Chart Analysis For Week of Jan 24, 2025Technical Analysis and Outlook: The Eurodollar saw a significant increase during this week's trading session after successfully breaking through our resistance levels at 1.031 and 1.039 and is now resting at the previous weekly chart analysis charts identified as a resistance level of 1.051. We expect a rally towards the next key target, the Interim Inner Currency Rally, set at 1.060. However, this upward movement could lead to a temporary retracement towards the support level at 1.041 and may challenge the next significant support level at 1.024.
by TradeSelecter
Euro Rises to 1-Month High as ECB Decision NearsEuro Appreciates as ECB Decision Looms The Euro has climbed to $1.05, its highest level in over a month, supported by a weaker U.S. dollar after President Trump softened his stance on universal tariffs and called for an immediate interest rate cut. EUR/USD Technical Analysis The pair is showing strong bullish momentum, having broken above the pivot level at 1.0470. Despite this, there is a chance of a short-term retest of the pivot level before the price pushes higher toward 1.0530 and 1.0605. For a bearish reversal, the price must break and sustain below 1.0437 with a 4-hour candle close. If this occurs, the next downside targets will be 1.0367 and potentially 1.0288. Trend Outlook Bullish Trend: Above 1.0469
Long
by SroshMayi
Will Trump's tariff threat be an obstacle to an ECB rate cut? Both short-term dollar weakness and the ECB’s increased inflation concerns have clearly propelled EURUSD upward. Finland's central bank governor, Oli Rehn, asserts that eurozone inflation will stabilize as anticipated and that monetary policy will continue to be constrained in the near future. Meanwhile, ECB President Lagarde has issued a stark warning that the threat of tariffs is set to rise with Trump’s return to power, which could lead to significant inflation risks. EURUSD breached above the descending channel’s upper bound and approached the resistance at 1.0470. EMA21 widens the gap after golden-crossing EMA78, indicating a possible shift to bullish momentum. If EURUSD breaches above 1.0470, the price could gain upward momentum toward 1.0560. Conversely, if EURUSD breaks below EMA21 and the support at 1.0360, the price may reenter the descending channel.
by inkicho_exness
EUR/USD Daily Chart Analysis For Week of Jan 17, 2025Technical Analysis and Outlook: The Eurodollar has seen a notable increase in volatility during this week's trading session after completing our significant Outer Currency Dip at 1.020. The interim rebound reached our target of the Mean Resistance at 1.030, as outlined in last week's chart analysis. We are now anticipating a retest of the completed Outer Currency Dip at 1.020, with additional extension levels at Outer Currency Dips of 1.016 and 1.005, respectively.
by TradeSelecter
EUR/USD Daily Chart Analysis For Week of Jan 10, 2025Technical Analysis and Outlook: The Eurodollar has experienced a significant increase during this week's trading session, surpassing our initial target of Mean Resistance at 1.034. It then encountered strong resistance at a Mean Resistance of 1.043, leading to a notable pullback that brought it down to an Outer Currency Dip of 1.025 and lower. We are now looking at the next target at Outer Currency Dip 1.020, with additional extension levels at Outer Currency Dip 1.016 and 1.005, respectively. Reaching our first target, Outer Currency Dip 1.025, will likely trigger an interim rebound toward the designated level at Mean Resistance 1.030.
by TradeSelecter
EUR/USD Daily Chart Analysis For Week of Jan 3, 2025Technical Analysis and Outlook: The Eurodollar has significantly declined in this week's abbreviated trading session, reaching the Outer Currency Dip level of 1.025. Consequently, the currency has rebounded robustly and is heading toward the Mean Resistance level of 1.034. Current analyses suggest that the Euro is positioned to continue its upward trajectory. Nevertheless, it is anticipated that a revitalized pullback will occur from this resistance level.
by TradeSelecter
EURGBP - Europe will pass this winter safely!?The EURGBP currency pair is below the EMA200 and EMA50 in the 4-hour timeframe and is moving in its descending channel. If the resistance range is broken, we can witness the upward movement of this currency pair. A valid break of the drawn upward trend line will provide us with the downward path of this currency pair to the level of 0.82400. Bloomberg has reported that the cessation of Russian natural gas flow to Europe via Ukraine is likely to heighten competition with Asia and drive up the cost of alternatives. Ukrainian President Volodymyr Zelensky stated on Wednesday that Ukraine hopes increased gas supplies from the U.S. and other producers to Europe will make prices more acceptable. The flow of gas from Russia to Europe through Ukraine stopped on Wednesday, marking the end of over five decades of this route being the primary channel for gas to the Eurozone. While this move was anticipated after months of political tension, Europe still needs to replace about 5% of its gas supply and may increasingly rely on storage levels that have now dropped below average. The European Commission noted that the suspension of gas flow via Ukraine on January 1st was a foreseen scenario, and the EU is prepared for it. Christine Lagarde, President of the European Central Bank (ECB), expressed optimism that the ECB could achieve a 2% inflation rate by 2025. She stated, “We have made significant progress in reducing inflation in 2024 and hope that 2025 will be the year we reach our target as expected and planned in our strategy. However, we will continue our efforts to ensure inflation stabilizes at the 2% medium-term target.” Meanwhile, UBS has noted that the value of the U.S. dollar has increased, suggesting that investors can sell dollars more robustly and convert them to currencies such as the British pound or the Australian dollar. Despite the recent rise in the dollar’s value, driven by shifts in expectations around Federal Reserve policies and U.S. government actions, the bank believes the dollar remains overvalued. While UBS does not anticipate a sharp decline in the dollar’s value in the short term, it sees opportunities for investors to pivot toward more attractive currencies. The British pound (GBP) and Australian dollar (AUD) are among its top picks due to their potential to perform well amidst evolving global monetary conditions. Additionally, according to data from Nationwide, house prices in the UK reached near-record levels at the end of last year. This indicates that the real estate market continues to gain momentum. Nationwide reported that house prices rose by 0.7% on a monthly basis, reaching an average of £269,426 (equivalent to $337,500). This figure is only slightly below the record high of £273,751 recorded in the summer of 2022.
Long
by Ali_PSND
EUR/USD Daily Chart Analysis For Week of Dec 27, 2024Technical Analysis and Outlook: During the current abbreviated trading week, the Eurodollar is exhibiting a narrow trading range above the Outer Currency Dip level of 1.035. Current analysis suggests that the Euro is poised to resume its upward trajectory, with anticipated targets of Mean Resistance 1.051 and a potential extension to Mean Resistance marked at 1.060. It is important to note that a pull-down movement may occur towards Mean Support at 1.039; with a possible retest of the completed Outer Currency Dip level of 1.035, before resuming the upside movement.
by TradeSelecter
EUR/USD Daily Chart Analysis For Week of Dec 20, 2024Technical Analysis and Outlook: The Eurodollar exhibited a bearish trend during the initial part of the week; however, it subsequently demonstrated a significant recovery by retesting the completed Outer Currency Dip at 1.035. This renewed interim rebound is poised to drive the Eurodollar toward the Mean Resistance level of 1.051. However, it is crucial to recognize that a retest of the completed Outer Currency Dip at 1.035 remains plausible.
by TradeSelecter
EUR/USD Daily Chart Analysis For Week of Dec 13, 2024Technical Analysis and Outlook: The Eurodollar has demonstrated bearish momentum during this week's trading session by staying firmly between Mean Res 1.060 and Mean Sup 1.049. This weak price action might be the clue to nulling the Inner Currency Rally 1.072 and extending its trajectory to revisiting the completed Outer Currency Dip 1.035. Nevertheless, it is essential to note that the Eurodollar may retest the Mean Res level at 1.060 and reignite its upward trend.
by TradeSelecter
EURUSD Trading Idea EUR/USD dipped 0.2% on Tuesday, marking its third straight decline as it approaches the key 1.0500 level. The Euro’s recent bullish momentum is fading, with traders shifting to a cautious stance ahead of two major events: US CPI Data (Wednesday): A pivotal release ahead of the Fed's final 2024 meeting. Inflation is expected to tick up to 2.7% YoY (from 2.6%), with core CPI holding steady at 3.3%. Any signs of stalled progress could dash hopes for a third consecutive rate cut on December 18, fueling USD volatility. ECB Rate Decision (Thursday): The ECB is widely anticipated to deliver another quarter-point rate cut. Forecasts suggest the Main Refinancing Operations Rate will be trimmed to 3.15% (from 3.4%), and the Deposit Facility Rate is expected to drop to 3.0% (from 3.25%). EUR/USD Technical Analysis: Entry Opportunity with SMC and Fibonacci Using Smart Money Concepts (SMC) and Fibonacci retracement, the key zone between the 0.71 and 0.79 Fibonacci levels is shaping up as a critical area of interest. Following the creation of a fair value gap at the last high, the price is now testing the 50% Fibonacci level, setting the stage for a potential trade setup. Trade Setup: Entry Point: 1.05520 (aligned with the 0.75 Fibonacci level) Stop Loss: 1.05697 (just above the 0.79 Fibonacci level for added risk protection) Take Profit: 1.04990 (targeting below the fair value gap for optimal risk-to-reward) Risk/Reward Insights: This setup offers a Risk/Reward Ratio of 2.98. By risking 17.7 pips to gain 53 pips, you're maximizing reward relative to risk. Disclaimer: Trading carries significant risks, and it’s essential to practice strict risk management. Always trade with a clear plan, use stop-loss orders, and never risk more than you can afford to lose. This analysis is not financial advice—ensure you understand the risks before making any decisions. Follow for more trading ideas, strategies, and insights to level up your trading game!
Short
by InwardTrader
EUR/USD Daily Chart Analysis For Week of Dec 6, 2024Technical Analysis and Outlook: The Eurodollar has demonstrated strong upward momentum during this week's trading session. It retreated to our designated support level, Mean Support at 1.049. Then, it bounced back vigorously to retest the significant resistance level, Mean Resistance, marked at 1.060, which was reached in the previous week's price action. The Eurodollar appears poised to move toward the target value of Inner Currency Rally 1.072 after surpassing the critical resistance level at 1.060. However, it is essential to note that the Eurodollar may retest the support level at 1.049 before continuing its upward trend.
by TradeSelecter
EURGBP - The weakness of the euro will end!?The EURGBP currency pair is below the EMA200 and EMA50 in the 4H timeframe and is moving in its descending channel. In case of breaking the resistance area, we can see the supply zone and resell in that zone with appropriate risk reward. A valid break of the drawn support area will provide us with the downward path of this currency pair to the level of 0.82400. Following Donald Trump’s victory in the U.S. presidential election, the euro experienced a sharp decline. This drop was attributed to market reactions to the possibility of aggressive policies in areas such as trade, immigration, and finance.Past experiences have shown that such policies can significantly impact exchange rates. It is anticipated that the U.S. tariff measures expected in early 2025 will play a crucial role in shaping the direction of exchange rates. The euro, particularly due to Europe’s significant trade surplus with the U.S., is highly vulnerable to these measures. According to statistics, the U.S. trade deficit with the eurozone increased from $158 billion in 2019 to $196 billion by September 2024. This development could serve as motivation for U.S. policymakers to apply further pressure. Another factor that might weaken the euro is the poor performance of eurozone countries in meeting NATO’s defense spending targets. Out of the eight countries that remain below the 2% defense spending threshold, seven are in the eurozone. This could provide Trump’s administration with justification for adopting stricter trade measures. JP Morgan has forecasted that the European Central Bank (ECB) will cut interest rates by 50 basis points during its December 12 meeting. While the market assigns only a 20% probability to this reduction, JP Morgan believes that such a cut would not suffice to bolster the economy. Data indicates that the preliminary estimate for overall consumer inflation dropped from 2.8% to 2.7%, while core inflation rose from 2% to 2.3%. Villeroy, a member of the ECB, dismissed these changes as insignificant. In his speech, he stated: “We have good news; inflation is decreasing and moving toward our target. Therefore, it is likely that we can continue reducing interest rates.” He added, “We are confident in our projections and expect to achieve our inflation target, possibly in the first half of next year.” Christine Lagarde, President of the ECB, in an article for The Economist, discussed how Europe’s savings can be transformed into investments, innovation, and growth. She highlighted that Europe faces numerous economic challenges and that directing savings toward productive investments is essential to stimulate growth. Lagarde emphasized the need for a strong capital markets union in Europe to better allocate financial resources and improve access to capital for innovative companies. She also stressed the importance of structural reforms to enhance the business environment and encourage entrepreneurship. She pointed to the role of coordinated fiscal and monetary policies in supporting sustainable and innovative investments and underscored the importance of cooperation among EU member states in achieving these objectives. Additionally, she called for the establishment of a stable and predictable legal and regulatory framework to boost investor confidence and drive economic growth. A recent Cluster17 survey revealed that around 54% of French citizens want President Emmanuel Macron to resign and for early presidential elections to be held in 2025. The survey also showed strong public polarization regarding the collapse of the Barnier government, highlighting the inability of political parties to unite voters. Political analyst Stéphane Fournier noted that these results increase pressure on Macron to appoint a new prime minister. The findings also reflect public dissatisfaction with the current political situation and the failure of parties to provide effective solutions to the ongoing crisis. According to a recent Reuters survey of economists, 73 out of 75 economists predict that the ECB will cut the deposit rate by 0.25% during its December meeting. Two others anticipate a 0.5% cut. Moreover, 51 out of 67 economists expect the ECB to reduce the deposit rate to 2% or lower by the end of 2025. Notably, in a November survey, 43 out of 63 economists made the same prediction.
Short
by Ali_PSND