Canton FX ‘s Richard Drivers forecast on the ECB data on Thursday and comments on the Eurozone:
”This morning’s weak eurozone growth and unemployment figures only pile further pressure on the ECB to cut interest rates. Other than Germany’s phobia of low interest rates, there really is nothing stopping the ECB and with this morning’s eurozone inflation data coming in so weak, the ground has probably never been more fertile for a rate cut.
Whether or not an interest rate cut will make any material difference in terms of economic growth is another matter but the ECB have nothing to lose by trying now, and we think they will. The ECB runs the risk of diminishing its own credibility if it continues to ignore the deteriorating eurozone growth profile.
The new Italian PM’s pledge to fight austerity could help usher in a new approach to the balance between debt reduction and growth-promotion in the eurozone – something clearly needs to change.”
Forexstreet commented, “the FX market remained in calm consolidation gearing up for the upcoming risk events, i.e: FOMC decision on Wednesday, the ECB announcement on Thursday and US NFP reports on Friday”.
Interactive investor is reporting: The ECB has repeatedly expressed concern about weak lending and is studying ways to alleviate the funding strain for small companies, the backbone of the European economy.
“The study showed only a quarter of Greek small- and medium-sized businesses that applied for a loan received full approval, while more than four-fifths of German ones were agreed. On Thursday German Chancellor Angela Merkel took the rare step of commenting on monetary policy, saying the ECB would have to raise rates if it were looking at Germany alone. Comments by ECB policymakers earlier this week suggest that falling inflation and poor growth prospects in the euro zone tilt the ECB towards a further cut in its main refinancing rate”.
Caxton FX is a foreign exchange company authorised and regulated by the FCA. http://www.caxtonfx.com/
Tradersdna is a leading digital and social media platform for traders and investors. Tradersdna offers premiere resources for trading and investing education, digital resources for personal finance, market analysis and free trading guides. More about TradersDNA Features: What Does It Take to Become an Aggressive Trader? | Everything You Need to Know About White Label Trading Software | Advantages of Automated Forex Trading
