The euro’s downtrend continued on Friday as more economic data supported the outlook for another European Central Bank rate cut in December.
The dollar strengthens as "there is greater room for an upward reassessment in US interest rate expectations relative to other major economies," BBH analysts write. The Atlanta Fed's updated projection of 2.
While the overall inflation returned to the ECB's target, core inflation — a measure which strips out volatile elements — is at 2.7%.
As challenging as France’s fiscal and political outlooks are, the country’s underlying areas of resilience include a favourable government debt profile, a resilient economy and well capitalised banks.
The dollar index has rallied since Republican candidate Donald Trump won the US presidential election. His win has changed the fiscal and monetary policy outlook, favoring the greenback.
Germany needs a stable and reform-oriented government to respond to the impact of US president-elect Donald Trump’s potential policy shifts that will impact Germany’s trade, fiscal and defence policies.
Donald Trump’s emphatic victory in the US presidential elections is a net negative for US risks over the medium run because it raises financial risk, although nearer-term implications for the economy are more mixed.
The prospect of a Donald Trump presidency roiled foreign-exchange markets, giving the dollar a huge boost and hammering other currencies like the euro, yen, Mexican peso and Chinese yuan. The Mexican peso sank to its weakest level against the dollar this year, before paring some losses. Trump has threatened to levy hefty tariffs on Mexico that could curb demand for its exports.
Investors are betting a second Donald Trump presidency will widen the economic gap between the U.S. and Europe. Traders ramped up wagers Wednesday that European policy makers will cut interest rates more aggressively, given Trump's proposed tariffs could hurt Europe's already struggling economy.
The preliminary figure for growth in the third quarter is 2.8%, 0.2% below the consensus.
Georgia’s coming elections highlight its tough balancing act between the West and Russia. Competing visions for the nation’s future, challenging geopolitics and sanctions risks threaten the sovereign’s ratings.
Inflation below target suggests that the cycle of loosening will probably continue up to summer 2025.
EUR/USD collapsed to an 11-week low on Thursday after the European Central Bank lowered interest rates by 25-bps.
The European Central Bank lowered its key interest rate to 3.25%, in its second consecutive cut. The move widens the gap in benchmark borrowing costs with the Federal Reserve. Find out more in our recently ...
Headline annual inflation reached a fresh low of more than three years but the greenback’s performance was mixed.
Italy aims to accelerate fiscal tightening to exit the Excessive Deficit Procedure earlier than expected, but high public debt, structural economic weaknesses and unfavourable demographics pose challenges.
Germany is facing demographic challenges with more acute structural pressures than other advanced economies. Labour-market and pension reforms are essential, but fragmented politics risk are eroding competitiveness.
Despite inflation heading below the ECB's target rate of 2% in September, core inflation — which strips out more volatile measures — still came in at 2.7%.
The US dollar index hit 14-month lows on Wednesday near 100.20. The Fed is expected to cut 25-bps rates in November and December, so market participants may price in the impact of future cuts.
A soft landing for the European economy could be slipping away, increasing pressure on policymakers to step up the pace of interest-rate cuts. Business surveys out Monday indicated that activity in the eurozone's two largest economies was much weaker than expected in September. Here is how markets reacted: + **An October rate cut is now on the table.** Derivatives markets show investors see the European Central bank's key rate at 3.31% next month, meaning they are pricing in almost a full quarter-point reduction from the current rate of 3.5%.