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EUR/HKD News
ECB's governing committee is bullish on two interest rate cuts this year and expects rates to possibly fall by another 100 basis points next year.
Ren said, "If you look at the market data, you will find that this means there will be two more interest rate cuts this year, and by the end of this year, the interest rate will be 3.25%." "As long as we can see that the process of deflation is continuing and prices are moving towards our medium-term symmetric target of 2%, there is reason to continue cutting interest rates."
ECB's Panetta: ECB Will Pursue Normalization Gradually and Smoothly
European Central Bank (ECB) executive board member Fabio Panetta said on Wednesday that the current economic environment in the Eurozone is consistent with a normalization of the monetary stance, per Reuters.
ECB: Lagarde Is Not on the List of Today's Speakers – UBS
There are several ECB speakers on the agenda today. One speaker, Rehn, has already suggested that two further rate cuts are a reasonable estimate for ECB action this year, Chief Economist at UBS Global Wealth management Paul Donoban notes.
Ifo: German Companies Less Willing to Hire New Staff in June Amid Lack of Orders
German companies became less willing to hire new employees in June due to a lack of orders, with only service providers planning workforce expansions, the ifo Institute said Wednesday.
French Household Confidence Declines in June
France's household confidence indicator fell to 89 in June from 90 points in May, according to data from the national statistics agency Insee published Wednesday.
Express News | European Central Bank committee member Lane: It is reasonable to expect two more interest rate cuts this year.
EUR: National Rally Says the Right Things – ING
French/German yield spreads have narrowed a little and the Euro (EUR) has edged up after representatives of France's National Rally (RN) party have said the party will respect the nation's budget rules, Global Head of Markets at ING Chris Turner notes.
Spain's Economy Grows Faster Than Expected
Spain's economy expanded a little more in the first quarter than had initially been estimated, boosted by a booming tourism industry as well as growth in other areas.
Ifo: German Exporters Turn Pessimistic in June
The sentiment among German exporters marginally fell in June amid a lack of clear direction in the industry, with companies in the metal sector expecting a decline in orders, according to an Ifo Institute survey published Tuesday.
Yushin Bank: Eurozone inflation expected to decline in June.
On June 24th, Gelunhui reported that economists at Yuxin Bank wrote in a report that the June eurozone inflation, which will be released next Tuesday, may ease, bringing the inflation rate closer to the European Central Bank's target of 2%. According to their estimates, the euro zone's CPI annual growth rate in June will increase by 2.5%, while the core CPI annual growth rate will remain stable at 2.9%. This trend will continue over the next few months, as wage growth slows and companies digest higher costs. The inflation rate in the eurozone will fall below 2% next year. Yuxin Bank said that the slowdown in the inflation rate in the eurozone has slowed, but has not derailed.
Monetary Policy Divergences Continue to Favor the Dollar – BBH
The drop in the eurozone PMI supports the idea that the latest Eropean Central Bank's (ECB's) "hawkish cut" was about growth risks, BBH FX strategists note.
More Space for Risk Premium Build-up in the Euro – ING
Latest polls show Marine Le Pen’s far-right RN party remains in the lead (35%) ahead of Sunday’s first round parliamentary vote, followed by left-wing NPF party (29%) and President Emmanuel Macron’s centrist coalition (19%), ING’s FX Strategist Francesco Pesole notes.
German Recovery Is Limping -- Market Talk
The German economy is struggling to build momentum, Carsten Brzeski at ING writes, after a survey indicated a gloomier mood among German businesses.
German Business Sentiment Declines on Gloomier Outlook
Sentiment at German companies has become more pessimistic on weakening expectations for business conditions ahead, according to a monthly survey.
German Ifo Business Climate Unexpectedly Falls in June; Expectations Down
Germany's business climate index declined to 88.6 points in June from 89.3 points in May, according to the Ifo Institute on Monday.
German IFO Business Climate Index Declines to 88.6 Vs. 89.7 Expected
The headline German IFO Business Climate Index declined to 88.6 in June from 89.3 in May. This reading came in below the market expectation of 89.7.
German DAX Could Develop Life of Its Own -- Market Talk
It is quite possible that the German stock index will develop a life of its own in the next two weeks, detached from Wall Street, CMC Markets analysts say in a research note.
Bumpy Road Ahead for Controlling Inflation, European Central Bank Board reiterates that interest rate decisions will be flexible.
ECB Executive Board member Schnabel recently pointed out that the ECB must maintain flexibility in terms of interest rates. Schnabel stated that the ECB has not promised a fixed interest rate path, but instead relies on data. She also acknowledged that the process of combating inflation may be "somewhat bumpy".
European Central Bank Executive Board member Schnabel warns that the inflation challenge is approaching the end point, and interest rate decisions will be flexible.
Schneider recently made a speech emphasizing the uncertainty of inflationary shocks, which requires the European Central Bank to maintain flexibility in interest rate decisions.
Eurozone Recovery Slows as French Uncertainty Hits New Orders -- 2nd Update
Business activity in the U.S. continued to grow rapidly this month, according to surveys of purchasing managers released Friday, but there were signs of a surprise slowdown in Europe as political uncertainty disrupted the flow of new orders.