Euro is one of the best performing major currencies today. Common currency jumped after media reports surfaced hinting that ECB may move out of negative rate territory as soon as this week. Reuters reported that ECB members are discussing whether to deliver a 25 or 50 basis point rate hike during a meeting later this week (Thursday). The latter option would see ECB deposit facility rate move up from current -0.50% to 0.00%. Money markets are currently pricing in a 60% chance of a 50 basis point move. However, it should be noted that Reuters hinted that discussions are ongoing, not that decision was made. Having said that and given historical dovishness of ECB, chances that ECB will stick with a 25 basis point rate hike remain high.
EURUSD jumped to 1.0250 as ECB rate hike odds continue to mount. The pair reached a daily high near 1.0253 - the highest level since July 6, 2022. An important technical development to note is that EURUSD managed to break above the upper limit of the Overbalance structure, hinting that the downtrend may be about to end.
Source: xStation5
Daily Summary: U.S.-China Tensions Trigger the Sharpest Sell-Off Since “Liberation Day” ✂️
Trump tariff threat to China sends shockwaves through financial markets
BREAKING: USDCAD slips following Canadian employment data 📌
ECB Not Gearing Up for Changes. Is EURUSD Undervalued?
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
