ECB Draghi Under Pressure to Cut After FOMC

European Central Bank President Draghi will testify before the European Parliament’s Economic and Monetary Committee a week after the American central bank’s Federal Open Market Committee (FOMC) left rates on hold. The Fed’s inaction leaves the ECB under pressure and could trigger a rate cut as soon as October 10 when the Monetary Policy meeting takes place in Malta.

European factories have shown uneven confidence from purchasing managers. German results have been steady and no surprise from the European economy’s engine, but results from France have been a revelation as they have managed to exceed expectations and managed to print signs of expansion for the first time in 18 months in June before tapering off, but still with expansion in sight.

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza