- The next move will be a rate cut and it is within our reach
- A rate cut in June is more probable than April but exact timing is secondary to the decision’s impact
- Patience is essential before making pivotal decisions
- ECB is not behind the curve, it is markets getting ahead of the event
- Disinflation signs are positive but not yet enough to make a confident conclusion
As has been the case in the last month, it is a he says, she says situation. Traders have now even fully priced in a 25 bps rate cut for April with 142 bps worth of cuts priced in for the year. Will the ECB cave in to that eventually?
This article was written by Justin Low at www.forexlive.com. Source