With Greek elections and Spanish banking rescues addressed in the European summit. Analysts are now starting to forecast the probability of a ECB benchmark rate cut on Thursday. European data was weaker which makes the case for a rate cut. Adding to that even the policital winds have changed. Once favouring austerity only measures to solve the crisis, the case has now been made that financial stimulus should be an alternative to restart the Euporean economy.
With the US Fourth of July holiday coming up on Wednesday the market will be waiting for the announcements from the European Central BAnk as well as the Bank of England which is set to make a rate announcement first. The market is already starting to price a rate cut, with saw the EUR lose ground versus the USD before the fourth of July holiday.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.