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Week Ahead – ECB decision and US inflation to fuel FX volatility

From xm.com

The Eurozone economy has gone through a rough patch over the last year. Growth has been almost stagnant, held back by Germany, which fell into contraction as a slowdown in global trade suppressed demand for exports and crippled the nation’s manufacturing sector. On the bright side, the economic stagnation has helped dampen inflationary pressures. Inflation fell to 2.4% in March, pushing the European Central Bank one step closer to cutting interest rates. Most ECB officials have pointed to a cut in June as the most likely scenario. Investors share this view. A June rate cut is already fully priced into money markets, ... (full story)

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  • Category: Fundamental Analysis