Olli Rehn, one of the European Central Bank’s officials spoke out in favor of an interest-rate increase in July, suggesting a growing shift on the Governing Council toward such a move. The governor of the Finnish central bank is one of more dovish policy makers and member of the ECB’s …
Read More »BoE hikes interest rates by 25 bps to 1.0%
The Bank of England on Thursday raised interest rates by 25 bps to 1.0%. Six of the bank’s nine rate-setters supported the 25 bps hike, though three wanted a larger 50 bps move. The rate hike was in line with expectations, but the vote split was more hawkish than expected, …
Read More »German Factory Orders plunge 4.7% MoM in March
The German Factory Orders fell sharply in March, suggesting that the manufacturing sector of Europe’s economic powerhouse is seeing a fresh downturn. Contracts for goods ‘Made in Germany’ declined by 4.7% on the month vs. -1.1% expected and -0.8% last, the latest data published by the Federal Statistics Office showed on …
Read More »European Central Bank Preview
For the ECB, the latest Eurozone data provide a discomforting combination of record-high inflation and slow first-quarter growth. The level and widespread nature of the former are forcing the central bank to act, and markets are now pricing in 90 bp of rate hikes this year, although the latter provides …
Read More »Schnabel: ECB may need to hike rates in July
European Central Bank member, Isabel Schnabel, told a German newspaper Handelsblatt on Tuesday that the ECB may need to raise interest rates as soon as July to stop high inflation from getting entrenched.EUR/USD is higher on the day by some 0.23% yet has not reacted to the comments, sticking to …
Read More »Eurozone Unemployment Rate drops to 6.8% in March vs. 6.7% expected
The Eurozone Unemployment Rate dropped to 6.8% vs. 6.7% expected and 6.9% reported in February, the latest data published by the Eurostat showed on Tuesday. The Producer Price Index (PPI) in the bloc rose to 5.3% MoM in March vs. 5% expected and 1.1% previous. On an annualized basis, the …
Read More »EUR/USD Struggles As Bulls Lose Faith Near 1.0600 Zone
The bullish attempt in EUR/USD appears to have bumped into a wall around the 1.0600 yardstick at the end of the week.EUR/USD retreats from earlier highs near 1.0600 amidst some tepid rebound in the USD, although the mood around the dollar remains tilted towards the bearish side on Friday.The pair …
Read More »Energy prices are driving inflation in Germany to levels not seen in four decades
German inflation in April reached its highest level in more than four decades, driven by prices of natural gas and mineral oil products that have risen sharply since Russia’s attack on Ukraine. On Thursday, the Federal Statistics Office said consumer prices rose 7.8 percent year on year, up from 7.6 …
Read More »ECB Official Hints at first rate hike during Q3
European Central Bank Governing Council member Ignazio Visco has added his voice to heated discussions on when the ECB will begin to raise its benchmark interest rate.Rates in the Eurozone have been negative following the region’s sovereign debt crisis, and the ECB has confirmed that it will conclude its net …
Read More »ECB Economic Bulletin: Russia’s aggression in Ukraine is causing enormous suffering
Russia’s aggression in Ukraine is causing enormous suffering. It is also affecting the economy, in Europe and beyond. The conflict and the associated uncertainty are weighing heavily on the confidence of businesses and consumers. Trade disruptions are leading to new shortages of materials and inputs. Surging energy and commodity prices …
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