Start
trading

Main >
Analytics
>
Fresh forecast
>
Forex Fundamental Analysis
>
HSBC analysts expect the ECB to cut rates by 25bps at each meeting

HSBC analysts expect the ECB to cut rates by 25bps at each meeting | 26 September 2024

26 September 2024, EUR/USD

HSBC analysts expect the ECB to cut rates by 25bps at each meeting

Event to watch out for today:

15:30 GMT+3. USD - GDP volume change for the quarter

EURUSD:

The Euro-dollar pair is trading firmly near 1.1140 during Asian trading on Thursday, supported by the general weakening of the US dollar. Several US Federal Reserve (Fed) officials are scheduled to speak on Thursday, including Fed Chairman Jerome Powell. In addition, weekly data on initial jobless claims, durable goods orders and final annualized US gross domestic product (GDP) data for the second quarter (Q2) will be released.

Traders are awaiting new catalysts as to how aggressive future US rate cuts will be. Many analysts believe the Fed will again raise the issue of a sharp rate cut at its November meeting. “Given his comments in Jackson Hole and what we heard from him at the press conference, yes, I think Chairman Powell will lean toward another 50 basis point rate cut if the labor market continues to weaken,” said Matthew Luzzetti, chief U.S. economist at Deutsche Bank.

Earlier this week, Chicago Fed chief Austan Goolsbee said policymakers “can't fall behind schedule” if they want the economy to make a soft landing. At the same time, Atlanta FRB President Raphael Bostic said the U.S. central bank doesn't need to be in a “mad rush” to cut rates. Fed chief Adriana Kugler said Wednesday she “strongly supports” the central bank's decision last week, adding that it would be appropriate to cut rates further if inflation continues to fall as expected. Traders will be more focused on the Fed's remarks on Thursday. Any dovish remarks from Fed officials this week could trigger bets on another large-scale Fed interest rate cut, which would send the Dollar lower against the Euro (EUR).

Survey data published earlier this week showed that business activity in the Eurozone as a whole contracted sharply, prompting speculation that the European Central Bank (ECB) will cut rates again. Analysts at HSBC said on Wednesday that they now expect the ECB to cut interest rates by 25 basis points (bps) at each meeting from October to April next year, given the weakening economic data.

Trading recommendation: Trade predominantly with Buy orders from the current price level.

FreshForex offers a wonderful 300% bonus on every deposit of $100 or more, giving you the opportunity to increase your trading volumes!

David Johnson
Analyst of «FreshForex» company
Agree with the review?
Traders' opinion:
Close
Log in

Tunjukkan kata laluan

Hide password

 Terlupa kata laluan anda?
Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .

Our best awards:

FreshForex is a brand that provides access to online trading for clients from more than 158 countries all over the world. The Company's partners are the licensed European liquidity providers, banks, payment aggregators and systems with which the company has been cooperating for more than 19 years.
Clients must be at least 18 years old to use the services of the Company.
The company's services and information on the site are not intended for citizens and residents of some countries, such as Belgium, China, North Korea, France, Hong Kong, Russian Federation, Spain, Great Britain, USA, and also countries identified by the FATF as high-risk countries or countries with serious AML/CFT deficiencies; countries or regions that are under international sanctions. A complete list is available on the "Countries where the company's services are not provided" page. The Company does not have representative offices in the Russian Federation and does not register clients from the Russian Federation.
Risk Warning: Trading financial instruments with leverage carries high risks and can result in both profits and losses. Potential losses are limited by the deposit amount. Before deciding to trade, the client should assess their risk tolerance, experience, and knowledge level.

Freshforex.com uses cookies for better website operation, traffic flow analysis, and personalization. By using this website you agree to our Cookie Policy.
User Data privacy is protected in accordance with GDPR. The SSL certificate installed on the website transfers the information over a secure protocol.
The site contains links to websites of third parties. The Company does not check or control the third-party resources that are in any way related to the FreshForex site, so the Company is not responsible for any third-party information or materials posted.
By creating a link to a third party website, the Company does not endorse or recommend any products or services offered by the third party.
The website content is intended for informational purposes only. It should not be regarded as an offer or solicitation to any person in any jurisdiction in which such an offer or solicitation is not authorized. It also should not be considered as an offer/solicitation to any person to whom it would be unlawful to make such an offer or solicitation, nor regarded as a recommendation to buy, sell or otherwise deal with any particular currency or any other trading asset investment. If you are not sure about your local trading regulations, please, leave this website immediately.
© 2004—2024 FreshForex – Forex broker
Reproduction of the contents is allowed only with active hyperlink to original source.