Euro Holds Steady After ECB Rate Cut
| Action Insight Mid-Day Report 6-6-24 |
Euro Holds Steady After ECB Rate Cut |
Following ECB's decision to lower interest rates by 25 bps, a move that aligned with market expectations, Euro remained relatively steady within its near term trading range. ECB President Christine Lagarde, speaking at the post-meeting press conference, deliberately avoided providing explicit forward guidance, stating that ECB is not pre-committing to any particular rate path. Lagarde also addressed the current inflation dynamics, acknowledging that price pressures are gradually subsiding, although wage inflation remains a concern. However, forward-looking indicators suggest that wage growth is likely to moderate over the course of the year. She projected that inflation would continue to hover around current levels for the remainder of this year and would begin to approach 2% target in the latter half of 2025... |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0851; (P) 1.0872; (R1) 1.0889; More⦠Intraday bias in EUR/USD remains neutral and outlook is unchanged. Further rally is expected as long as 1.0788 support holds. Break of 1.0915 will resume the rally from 1.0601 to 61.8% projection of 1.0601 to 1.0894 from 1.0788 at 1.0969. However, firm break of 1.0788 will turn bias back to the downside for deeper decline instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 01:30 | AUD | Trade Balance (AUD) May | 6.55B | 5.50B | 5.02B | 4.84B | | 05:45 | CHF | Unemployment Rate May | 2.40% | 2.30% | 2.30% | | 06:00 | EUR | Germany Factory Orders M/M Apr | -0.20% | 0.50% | -0.40% | | 08:00 | EUR | Italy Retail Sales M/M Apr | -0.10% | 0.30% | 0.00% | | 08:30 | GBP | Construction PMI May | 54.7 | 52.5 | 53 | | 09:00 | EUR | Eurozone Retail Sales M/M Apr | -0.50% | -0.20% | 0.80% | 0.70% | | 12:15 | EUR | ECB Rate On Deposit Facility | 3.75% | 3.75% | 4.00% | | 12:15 | EUR | ECB Main Refinancing Operations Rate | 4.25% | 4.25% | 4.50% | | 12:30 | USD | Trade Balance (USD) Apr | -74.6B | -69.8B | -69.4B | -68.6B | | 12:30 | USD | Initial Jobless Claims (May 31) | 229K | 215K | 219K | | 12:30 | USD | Nonfarm Productivity Q1 | 0.20% | 0.30% | 0.30% | | 12:30 | USD | Unit Labor Costs Q1 | 4.00% | 4.70% | 4.70% | | 12:30 | CAD | Trade Balance (CAD) Apr | -1.05B | -2.2B | -2.3B | | 12:45 | EUR | ECB Press Conference | | 14:00 | CAD | Ivey PMI May | 65.2 | 63 | | 14:30 | USD | Natural Gas Storage | 89B | 84B |
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