The European Central Bank reduces the main prices by 25 basis points in April as expected
The European Central Bank (ECB) announced on Thursday that it reduced the main prices by 25 basis points (BPS) after the April policy meeting, as expected. With this decision, the interest rate on the main re -financing processes, interest rates on the marginal lending facility and the deposit facility reached 2.4 %, 2.65 % and 2.25 %, respectively.
Follow the direct coverage of European Central Bank policy ads and market reaction.
The main meals of the European Central Bank policy statement
“INFLATION continued to develop as employees expect, as the main inflation and basic inflation decreased in March. “
“The eurozone economy has built some flexibility against global shocks, but growth expectations have deteriorated due to the high trade tensions.”
“The increased uncertainty of confidence between families and companies is likely to reduce, and the response to negative and volatile trade tensions of commercial tensions is likely to have a stretching effect on financing conditions.”
“These factors may affect the economic expectations of the euro area.”
“In the current circumstances of the extraordinary certainty, it will follow an approach based on data and meeting separately to determine the appropriate monetary policy position.”
“The interest rate decisions will be based on their evaluation of inflation expectations in light of the incoming economic and financial data, the basic inflation dynamics and the power of monetary policy transmission.”
“The European Central Bank does not need a pre -pathway for the rate.”
“Pandemim Emerygement (PEP) and application portfolios decreases at a predictable and predictable pace, as the Eurosyster system no longer invests the main payment payments of mature securities.”
The market reaction to the decisions of the European Central Bank policy
EUR/USD fell slightly with the immediate reaction to the European Central Bank policy ads. At the time of the press, the pair decreased by 0.42 % a day at 1.1350.
The price of the euro today
The table below shows the percentage of euro change (EUR) against the main currencies listed today. Euro was the weakest against the New Zealand dollar.
| US dollar | euro | GBP | JPY | CAD | Aud | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| US dollar | 0.38 % | 0.12 % | 0.48 % | 0.19 % | 0.09 % | -11 % | 0.62 % | |
| euro | -0.38 % | -0.31 % | 0.08 % | -0.24 % | -0.32 % | -0.54 % | 0.20 % | |
| GBP | -0.12 % | 0.31 % | 0.38 % | 0.08 % | -01 % | -0.22 % | 0.52 % | |
| JPY | -0.48 % | -08 % | -0.38 % | -0.32 % | -0.42 % | -0.71 % | 0.11 % | |
| CAD | -0.19 % | 0.24 % | -08 % | 0.32 % | -07 % | -0.30 % | 0.45 % | |
| Aud | -0.09 % | 0.32 % | 0.00 % | 0.42 % | 0.07 % | -0.21 % | 0.52 % | |
| Nzd | 0.11 % | 0.54 % | 0.22 % | 0.71 % | 0.30 % | 0.21 % | 0.74 % | |
| Chf | -62 % | -0.20 % | -52 % | -11 % | -0.45 % | -52 % | -0.74 % |
The heat map shows the percentage changes in the main currencies against each other. The basic currency is chosen from the left column, while the quotation currency is chosen from the top row. For example, if you choose the euro from the left column and move along the horizontal line to the US dollar, the percentage offered in the box will represent EUR (Base)/USD (quote).
This section was published below as an inspection of European Central Bank policy ads at 07:00 GMT.
- The European Central Bank is expected to reduce the main prices by 25 basis points on Thursday.
- The focus will be on the language of the European Central Bank statement and President Christine Lagarde’s comments.
- EUR/USD brackets for severe fluctuations to European Central Bank policy ads.
The European Central Bank (ECB) will announce the interest rate decision in April on Thursday at 12:15 GMT. The markets are widely expecting that the central bank will reduce the main prices for the sixth consecutive time.
European Central Bank President Christine Lagarde A press conference will be held at 12:45 GMT. In this conference, the prepared statement on monetary policy and answering questions from the media will present.
The euro remains ready for a great reaction to the European Central Bank ads against US dollar (USD).
What do you expect from the interest rate decision in the European Central Bank?
The European Central Bank is scheduled to deliver 25 other basis points (BPS) after the April policy meeting, which reduces the standard price of the deposit facility to 2.25 % of 2.5 %, while the inflation process remains on the right track.
Eurostat data showed that HICP The euro area It increased by 2.2 % on an annual basis (YOY) in March, after a 2.3 % increase in February. In addition, HICP annual inflation to 2.4 % of 2.6 % in the same period.
Investors will examine the policy statement to know how the European Central Bank expects the new trade system for the United States to affect inflation and growth prospects in the European Union (European Union).
To preview the European Central Bank meeting in April, TD Securities analysts said they expect to reduce rates of 25 basis points. “The main focus in the press conference should be on economic uncertainty over commercial policies and global demand to move forward. In this way, the formulation is likely to be on the path of the future average vague and the adoption of stress data,” the analysts pointed out.
Earlier this month, the Board of Directors of the European Central Bank Gediminas šimkus argued that US tariff decisions call for a more absorbing monetary policy and added that there is a need to reduce 25 basis points in April. Although the United States and the European Union have agreed to a temporary stop of 90 days in mutual definitions since then, there are still many uncertainty about what the European Union’s trade relations and the United States will appear after the allowance period. Quoting people familiar with discussions, Bloomberg said earlier this week that the European Union was expected to remain the largest part of the American import tariff in its place after little progress in the negotiations that took place on Monday.
How can the European Central Bank meet the euro/US dollar?
EUR/USD has gained more than 4 % in March, and already increased about 5 % since the beginning of April. During this period, the intense sale of the US dollar surrounding the US dollar (USD) on increasing concerns about the economic deflation as a result of deepening the commercial conflicts that feed the husband’s gathering.
In the event that the European Central Bank’s policy statement, or President Lagarde indicates that they remain confident of the resumption of the inflation, despite the induction uncertainty, investors can see this as a sign of more policy recognition in the near future. Pessimistic Economic expectations You can reaffirm this opinion. In this scenario, the euro can be subjected to the pressure of sale with an immediate reaction, and the door opened to a declining correction in the US/USA dollars.
On the other side, euro It can continue to outperform the US dollar if the European Central Bank focuses on the risk of upscale inflation and possible stopping signs in price cuts, indicating the need for more time to assess the impact of definitions.
Erine Singozer, an analyst at the European session in FxstreeetProvides a brief artistic look for EUR/USD:
“EUR/USD extends near the upper limit of the two -month -old slopes and the RSI index (RSI) on the daily chart above 70, indicating that the husband can correct technical correction before the next leg rises.”
“On the negative side, the mid -channel point corresponds to as a major support level at 1.1200. If the US/dollar/dollar approaches this level, 1.1100 (fixed level) can be considered as temporary support 1.1000 (psychological level, 1.15 days (level (5). (Fixed level),“ Sengizer added.
Common questions euro
The euro is the currency of the 19 European Union countries belonging to the eurozone. It is the second most traded currency in the world behind the US dollar. In 2022, it represented 31 % of all foreign exchange transactions, with an average daily rotation of more than $ 2.2 trillion per day. EUR/USD is the most trading currency pair in the world, which represents an estimated 30 % of all transactions, followed by EUR/JPY (4 %), EUR/GBP (3 %) and EUR/AUD (2 %).
The European Central Bank (ECB) in Frankfurt, Germany, is the backup bank. The European Central Bank sets interest rates and runs monetary policy. The primary mandate in the European Central Bank is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary performance is to raise or reduce interest rates. Relatively high interest rates – or expect higher rates – usually benefit from the euro and vice versa. The Board of Directors of the European Central Bank is making monetary policy decisions at eight times a year. Decisions are made by the heads of national banks in the eurozone and six permanent members, including the President of the European Central Bank, Christine Lagarde.
The inflation data in the euro area, measured by a coordinated index of consumer prices (HICP), is an important economist for the euro. If inflation increases more than expected, especially if it is 2 % higher than the European Central Bank’s goal, then the European Central Bank is obliged to raise interest rates to return it in control. Relatively high interest rates usually benefit compared to its euro counterparts, as it makes the region more attractive as a place for global investors to stop their money.
Data ejaculates a measurement of economics health and can affect the euro. Indicators such as GDP, manufacturing, PMIS, employment services, and consumer morale surveys can affect the trend of uniform currency. The strong economy is useful for the euro. Not only is to attract more foreign investment, but the European Central Bank may encourage interest rates, which will enhance the euro directly. Otherwise, if economic data is weak, the euro is likely to decrease. Economic data of the four economies in the eurozone (Germany, France, Italy and Spain) are of particular importance, because it represents 75 % of the eurozone economy.
Other important version of the euro is the commercial balance. This indicator measures the difference between what a country gains from its exports and what it spends on imports during a certain period. If a country produces very absolute after exports, its currency will obtain a purely value of the additional demand created from foreign buyers who seek to buy these goods. Therefore, the positive and positive trade balance enhances the currency and vice versa to achieve a negative balance.
