​#worldnews #ECB #Fed ⠀ ECB: the regulator will not go again | xChief | Global

​#worldnews #ECB #Fed
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ECB: the regulator will not go against the market
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The deposit rate cut has turned from an opportunity into a necessity, so we can only discuss the size of the correction. After the Fed's sharp moves, the 50bp trick may well be repeated in Europe.
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After the previous ECB meeting, new negative factors have emerged in the Eurozone economy. Business activity hints at a slowdown in GDP dynamics. The German government predicts a recession in 2024, with inflation falling to 1.8%. The specter of deflation and negative rates, which dropped the euro to parity with the dollar ten years ago, is roaming Europe.
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History could repeat itself if U.S. inflation accelerates after Trump takes office. Then, the Fed will be forced to pause the cycle of monetary expansion, and the ECB will continue to cut rates.
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Christine Lagarde's speech may support the euro currency: the head of the ECB may say that in December, the regulator will take a pause and keep the rate. Of course, it is unlikely that she will state this openly, but perhaps she will at least give some hints. If the market receives such a signal, the euro can get out of the abyss, at least for a while. However, the gloomy prospects for the European economy have not been canceled.
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There are several potential outcomes for the ECB meeting tomorrow, but all of them could have a negative impact on the market. Even if we consider that major players have decided to close about 50-70% of short positions, EUR/USD is still on a downward trend towards the key zone of 1.08. Reversing this trend will be challenging, but a reversal above 1.10 could shift attention back to the resistance area of 1.12. This could potentially signal the start of a bullish trend in the market.
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Speculation on the publication of the ECB decision and press conference is guaranteed, so let's behave reasonably and not take risks for nothing.
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Profits to y’all!