EUR/USD drops slightly below 1.09. The ECB kept rates unchanged as expected and left the September rate decision ‘wide open’ and data-dependent, notes Chang Wei Liang, FX and Credit Strategist at DBS.
The ECB leans towards caution
“EUR/USD fell slightly below 1.09, with the ECB keeping rates unchanged as expected and leaving the September rate decision ‘widely open’ and data-dependent. ECB President Lagarde suggested another cut is possible if data ‘confirms the disinflationary process’, and market expectations have not budged from largely expecting a cut in September.”
“Meanwhile, fractured French politics and potential disagreements over the budget could weigh on consumption and investment, adding another reason for the ECB to lean towards caution.”
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.
