The fall in the eurozone PMI supports the idea that the latest “hardline cut” by the European Central Bank (ECB) was due to growth risks, BBH FX strategists say.
Monetary policy will boost the market this week
“The fall in the eurozone PMI supports our view that the ECB’s ‘hardline cut’ this month was due to growth risks. The SNB cut rates for the second time last week, while the BoE maintained a moderate stance that prepares the ground for a cut in August.”
“Meanwhile, Fed officials continue to advise patience, with most emphasizing that the bank needs to see more progress in inflation before contemplating a rate cut. The market continues to view November as the most likely meeting for a cut, although “There is almost a 75% chance of a cut in September. As always, everything will depend on the data.”
“Waller, Goolsbee and Daly talk today. Even the consummate moderate Goolsbee has stayed on message, so cautious communication is likely to continue this week.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
