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• No plan for Trump call with Musk.

In a brief call tonight with Politico, Trump said that things with Elon were going well. White House aides also reported that they scheduled a call Friday with Musk to broker a peace.

This is not necessarily a bad news. There might be other priorities than the spat between the two.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

The post Ex-Dividend 09/6/2025 first appeared on IC Markets | Official Blog.

The ranges of estimates are
important in terms of market reaction because when the actual data deviates from the
expectations, it creates a surprise effect. Another
important input in market’s reaction is the distribution of forecasts.

In fact, although we can have a range of
estimates, most forecasts might be clustered on the upper bound of the
range, so even if the data comes out inside the range of estimates but
on the lower bound of the range, it can still create a surprise effect.

Non-Farm Payrolls

• 75K-190K range of estimates
• 110K-150K range most clustered
• 130K consensus

Unemployment Rate

• 4.3% (14%)
• 4.2% (83%) – consensus
• 4.1% (3%)

Average Hourly Earnings Y/Y

• 3.8% (10%)
• 3.7% (45%) – consensus
• 3.6% (45%)

Average Hourly Earnings M/M

• 0.4% (2%)
• 0.3% (71%) – consensus
• 0.2% (27%)

Average Weekly Hours

• 34.4 (3%)
• 34.3 (76%) – consensus
• 34.2 (21%)

You can notice that the forecasts are leaning towards a softish report. There are more forecasts for higher unemployment rate and lower average hourly earnings figures. Therefore, if the data comes out a bit above consensus, it would have a bigger surprise effect than if the data were to come below consensus.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

• We successfully overcome inflationary process.
• Tariffs imposed by US are deflationary.
• Monetary policy is in a cycle of reducing rates.
• All data indicate cycle will continue in 2025.
• Euro Area inflation rate will drop further and approach 1% by the beginning of 2026.
• I don’t know at what pace rate moves will happen.

At this rate, we will hear from all the 26 members of the Governing Council saying that they won the battle against inflation. He sounds more dovish than the other members because he’s the most dovish one and he’s held this stance for a long time.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

IC Markets Europe Fundamental Forecast | 6 June 2025

What happened in the Asia session?

Asian markets traded within a narrow band on Friday as investors looked for further signals regarding trade discussions between the U.S. and key regional economies, particularly China. Chinese stocks showed little reaction to U.S. President Donald Trump’s mention of a constructive phone conversation with Chinese President Xi Jinping, which is anticipated to breathe new life into trade talks.

What does it mean for the Europe & US sessions?

Following Thursday’s interest rate reduction by the ECB, all focus will turn to consumer spending and economic output for the European Union. Should markets receive a robust set of macroeconomic results, the Euro is likely to benefit from even stronger tailwinds – this currency pair looks on course to notch its second weekly advance in the past three weeks.

After adding just 7,400 jobs in April, Canada’s labour market is anticipated to shed nearly 12,000 workers in May while the unemployment rate edges higher from 6.9% to 7.0%. The Loonie is all but certain to face extreme price movements during the U.S. trading hours as the highly anticipated U.S. NFPs are also released at the same time, injecting further volatility for USD/CAD.

The Dollar Index (DXY)

Key news events today

BLS Employment Report (12:30 pm GMT)

What can we expect from DXY today?

After slowing at the beginning of this year, job growth improved in March and April, with 185,000 and 177,000 employees added to the labour force. However, non-farm payrolls (NFPs) are expected to slow in May, with only 126,000 jobs forecast to be added to the U.S. labour market while the unemployment rate looks to remain unchanged at 4.2%. Looking at Wednesday’s ADP employment report where a ‘measly’ 37,000 jobs were added to private payrolls, it would come as no surprise should the NFPs also suffer a huge miss, especially since unemployment claims trended noticeably higher in the final two weeks of May. Labour market deterioration would increase rate cut expectations by the Federal Reserve, placing even further overhead pressures on the greenback.

Central Bank Notes:

• The Board of Governors of the Federal Reserve System voted unanimously to maintain the Federal Funds Rate in a target range of 4.25 to 4.50% on 7 May 2025.
• The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run, but uncertainty around the economic outlook has increased further.
• The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.
• Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace while the unemployment rate has stabilised at a low level in recent months, and labour market conditions remain solid. However, inflation remains somewhat elevated.
• GDP growth forecasts were revised downward for 2025 (1.7% vs. 2.1% in the December projection) while PCE inflation projections have been adjusted slightly higher for 2025, with core inflation expected to reach 2.5%, partly due to tariff-related pressures.
• In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook and would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of its goals.
• Beginning in April, the Committee will slow the pace of decline of its securities holdings by reducing the monthly redemption cap on Treasury securities from $25B to $5B while maintaining the monthly redemption cap on agency debt and agency mortgage-backed securities at $35B.
• The next meeting is scheduled for 17 to 18 June 2025.

Next 24 Hours Bias

Medium Bearish

Gold (XAU)

Key news events today

BLS Employment Report (12:30 pm GMT)

What can we expect from Gold today?

After slowing at the beginning of this year, job growth improved in March and April, with 185,000 and 177,000 employees added to the labour force. However, non-farm payrolls (NFPs) are expected to slow in May, with only 126,000 jobs forecast to be added to the U.S. labour market while the unemployment rate looks to remain unchanged at 4.2%. Looking at Wednesday’s ADP employment report where a ‘measly’ 37,000 jobs were added to private payrolls, it would come as no surprise should the NFPs also suffer a huge miss, especially since unemployment claims trended noticeably higher in the final two weeks of May. Labour market deterioration would increase rate cut expectations by the Federal Reserve, placing even further overhead pressures on the greenback and potentially providing a huge boost for gold prices.

Next 24 Hours Bias

Medium Bullish

The Australian Dollar (AUD)

Key news events today

No major news events.

What can we expect from AUD today?

Despite this week’s ‘soft’ macroeconomic data, demand for the Aussie was robust as it reached an overnight high of 0.6538 on Thursday. This currency pair ran out of steam in early Asia trade as it hovered around the threshold of 0.6500 but it will likely register its second close in the green over the past three weeks.

Central Bank Notes:

• The RBA reduced its cash rate by 25 basis points (bps), bringing it down to 3.85% on 20 May, following a pause on 1 April.
• Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance.
• Data on inflation for the March quarter provided further evidence that inflation continues to ease. At 2.9%, annual trimmed mean inflation was below 3% for the first time since 2021 and headline inflation, at 2.4%, remained within the target band of 2 to 3%.
• While recent tariff announcements have resulted in a rebound in financial market prices, there is still considerable uncertainty about the final scope of the tariffs and policy responses in other countries, contributing to a weaker outlook for growth, employment and inflation in Australia.
• Private domestic demand appears to have been recovering, real household incomes have picked up and there has been an easing in some measures of financial stress. However, businesses in some sectors continue to report that weakness in demand makes it difficult to pass on cost increases to final prices.
• At the same time, a range of indicators suggests that labour market conditions remain tight. Employment is continuing to grow, measures of labour underutilisation are at relatively low rates and business surveys and liaison suggest that availability of labour is still a constraint for a range of employers.
• Looking through quarterly volatility, wage growth has softened over the past year or so but productivity growth has not picked up and growth in unit labour costs remains high.
• There are uncertainties about the outlook for domestic economic activity and inflation stemming from both domestic and international developments. While the central projection is for growth in household consumption to continue to increase as real incomes rise, recent data suggest that the pick-up will be a little slower than was expected three months ago.
• There is a risk that any pick-up in consumption is even slower than this, resulting in continued subdued growth in aggregate demand and a sharper deterioration in the labour market than currently expected.
• With inflation expected to remain around target, the Board therefore judged that an easing in monetary policy at this meeting was appropriate, assessing that this move would make monetary policy somewhat less restrictive.
• The Board will be attentive to the data and the evolving assessment of risks to guide its decisions. In doing so, it will pay close attention to developments in the global economy and financial markets, trends in domestic demand, and the outlook for inflation and the labour market.
• The Board is focused on its mandate to deliver price stability and full employment and will do what it considers necessary to achieve that outcome.
• The next meeting is on 8 July 2025.

Next 24 Hours Bias

Weak Bullish

The Kiwi Dollar (NZD)

Key news events today

No major news events.

What can we expect from NZD today?

Broad weakness in the greenback continues to keep the Kiwi elevated as it hit an overnight high of 0.6080. Although this currency pair pulled back at the beginning of Friday’s Asia session, it remained above the threshold of 0.6000.

Central Bank Notes:

• The Monetary Policy Committee (MPC) agreed to reduce the Official Cash Rate (OCR) by 25 basis points bringing it down to 3.25% on 28 May, marking the sixth consecutive rate cut.
• The Committee stated that annual consumer price index inflation increased to 2.5% in the first quarter of 2025 while inflation expectations across firms and households have also risen.
• However, core inflation is declining and there is spare productive capacity in the economy; these conditions are consistent with inflation returning to the mid-point of the 1 to 3% target band over the medium term.
• The New Zealand economy is recovering after a period of contraction as high commodity prices and lower interest rates are supporting overall economic activity but recent developments in the international economy are expected to reduce global economic growth.
• Both tariffs and increased policy uncertainty overseas are expected to moderate New Zealand’s economic recovery and reduce medium-term inflation pressures. However, there remains considerable uncertainty around these judgements.
• Labour market conditions remain weak while the unemployment rate is expected to peak this quarter at 5.2%.
• Inflation is within the target band, and the Committee is well placed to respond to domestic and international developments to maintain price stability over the medium term.
• The next meeting is on 9 July 2025.

Next 24 Hours Bias

Medium Bullish

The Japanese Yen (JPY)

Key news events today

No major news events.

What can we expect from JPY today?

Demand for safe-haven assets such as the yen waned this week as global equity markets remained calm and market sentiment was positive. USD/JPY found its footing around 142.50 this week before climbing above 143.50 overnight. This currency pair edged higher toward 144 as Asian markets came online on Friday.

Central Bank Notes:

• The Policy Board of the Bank of Japan decided on 1 May, by a unanimous vote, to set the following guidelines for money market operations for the inter-meeting period:
  1. The Bank will encourage the uncollateralized overnight call rate to remain at around 0.5%.
  2. The Bank will continue its plan to reduce the amount of its monthly outright purchases of JGBs, aiming to reach about 3 trillion yen by January-March 2026.
• Japan’s economic growth is likely to moderate, as trade and other policies in each jurisdiction lead to a slowdown in overseas economies and to a decline in domestic corporate profits and other factors, although factors such as accommodative financial conditions are expected to provide support. Thereafter, Japan’s economic growth rate is likely to rise, with overseas economies returning to a moderate growth path.
• The year-on-year rate of increase in the consumer price index (CPI, all items less fresh food) is likely to be in the range of 2.0-2.5% for fiscal 2025, in the range of 1.5-2.0% for fiscal 2026, and at around 2% for fiscal 2027. The effects of the past rise in import prices and of the recent rise in food prices such as rice prices – these factors have pushed up the inflation rate so far – are expected to wane.
• Meanwhile, underlying CPI inflation is likely to be sluggish, mainly due to the deceleration in the economy. Thereafter, however, underlying CPI inflation is expected to increase gradually.
• Regarding the employment and income situation, despite the deceleration in the economy, labour market conditions are likely to remain tight, as it will become more difficult for labour supply of women and seniors to increase.
• Comparing the projections through fiscal 2026 with those presented in the previous Outlook for Economic Activity and Prices (Outlook Report), the projected real GDP growth rate for fiscal 2024 is somewhat higher, but the projected growth rates for fiscal 2025 and 2026 are lower due to the effects of trade and other policies in each jurisdiction.
• There are various risks to the outlook. In particular, it is extremely uncertain how trade and other policies in each jurisdiction will evolve and how overseas economic activity and prices will react to them. It is therefore necessary to pay due attention to the impact of these developments on financial and foreign exchange markets and on Japan’s economic activity and prices.
• With regard to the risk balance, risks to economic activity are skewed to the downside for fiscal 2025 and 2026. Risks to prices are also skewed to the downside for fiscal 2025 and 2026.
• The next meeting is scheduled for 17 June 2025.

Next 24 Hours Bias

Medium Bearish

The Euro (EUR)

Key news events today

Retail Sales (9:00 am GMT)

GDP (9:00 am GMT)

What can we expect from EUR today?

Following Thursday’s interest rate reduction by the ECB, all focus will turn to consumer spending and economic output for the European Union. Should markets receive a robust set of macroeconomic results, the Euro is likely to benefit from even stronger tailwinds – this currency pair looks on course to notch its second weekly advance in the past three weeks.

Central Bank Notes:

• The Governing Council reduced the three key ECB interest rates by 25 basis points on 5 June to mark the seventh successive rate cut.
• Accordingly, the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will be decreased to 2.15%, 2.40% and 2.00% respectively.
• Inflation is currently at around the Governing Council’s 2% medium-term target. In the baseline of the new Eurosystem staff projections, headline inflation is set to average 2.0% in 2025, 1.6% in 2026 and 2.0% in 2027. The downward revisions compared with the March projections, by 0.3 percentage points for both 2025 and 2026, mainly reflect lower assumptions for energy prices and a stronger euro. Staff expect inflation excluding energy and food to average 2.4% in 2025 and 1.9% in 2026 and 2027, broadly unchanged since March.
• Staff see real GDP growth averaging 0.9% in 2025, 1.1% in 2026 and 1.3% in 2027. The unrevised growth projection for 2025 reflects a stronger-than-expected first quarter combined with weaker prospects for the remainder of the year. While the uncertainty surrounding trade policies is expected to weigh on business investment and exports, especially in the short term, rising government investment in defence and infrastructure will increasingly support growth over the medium term.
• Higher real incomes and a robust labour market will allow households to spend more. Together with more favourable financing conditions, this should make the economy more resilient to global shocks. Wage growth is still elevated but continues to moderate visibly, and profits are partially buffering its impact on inflation.
• The Governing Council is determined to ensure that inflation stabilises sustainably at its 2% medium-term target. Especially in current conditions of exceptional uncertainty, it will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance.
• The Council’s interest rate decisions will be based on its assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation and the strength of monetary policy transmission, and it is not pre-committing to a particular rate path.
• The asset purchase programme (APP) and pandemic emergency purchase programme (PEPP) portfolios are declining at a measured and predictable pace, as the Eurosystem no longer reinvests the principal payments from maturing securities.
• The next meeting is on 24 July 2025.

Next 24 Hours Bias

Medium Bullish

The Swiss Franc (CHF)

Key news events today

No major news events.

What can we expect from CHF today?

With global equity markets remaining somewhat calm, demand for safe-haven assets such as the Swiss franc waned this week, providing a near-term floor for USD/CHF. This currency pair has remained above the 0.8200 handle for most parts of this week but it will likely notch its second loss in three weeks.

Central Bank Notes:

• The SNB eased monetary policy by lowering its key policy rate by 25 basis points, from 0.50% to 0.25% on 20 March 2025, marking the fifth consecutive reduction.
• Underlying inflationary pressure has decreased further this quarter.
• Inflation in the period since the last monetary policy assessment has again been lower than expected, decreasing from 0.7% in November to 0.3% in February, primarily due to lower electricity prices.
• In the shorter term, the new conditional inflation forecast is slightly higher than December: 0.3% for Q2 2025, 0.4% for 2025 overall, and 0.8% for 2026 and 2027, based on the assumption that the SNB policy rate remains at 0.25% over the entire forecast horizon.
• GDP growth in Switzerland remains moderate, with the services sector continuing to show slightly stronger growth, while manufacturing faces challenges.
• The SNB anticipates GDP growth of around 1.0% to 1.5% for 2025.
• The SNB will continue to monitor the situation closely and will adjust its monetary policy if necessary to ensure inflation remains within the range consistent with price stability over the medium term.
• The next meeting is on 19 June 2025.

Next 24 Hours Bias

Weak Bearish

The Pound (GBP)

Key news events today

No major news events.

What can we expect from GBP today?

Although construction activity improved slightly in May, this sector registered its fifth consecutive month of contraction with a reading of 47.9. Production and new orders experienced moderate declines, but business confidence reached its highest level since December 2024. On the downside, employment was notably weak, with job losses accelerating at their fastest pace since August 2020, driven by soft demand and pressure on profit margins. Residential construction continued to be the poorest performing sector, while commercial activity saw only a slight decrease. Both purchasing activity and the use of subcontractors fell, which helped improve supply times. Although input cost inflation remained high, it eased from the peaks seen in March, as suppliers passed on increased payroll expenses. Despite the ongoing deterioration in the construction sector, demand for the pound remained robust as Cable reached an overnight high of 1.3616, primarily due to the broad weakness in the U.S. dollar.

Central Bank Notes:

• The Bank of England’s Monetary Policy Committee (MPC) voted by a majority of 5 to 4 to reduce the Bank Rate by 25 basis points (bps), bringing it down to 4.25% on 8 May 2025.
• Two members preferred a larger cut of 50 bps, while two opted to hold rates steady at 4.5%.
• The MPC also voted unanimously to reduce the stock of UK government bond purchases held for monetary policy purposes and financed by the issuance of central bank reserves, by £100B over the next 12 months to a total of £558B, starting in October 2024. On 18 December 2024, the stock of UK government bonds held for monetary policy purposes was £655B.
• Progress on disinflation in domestic price and wage pressures is generally continuing. Twelve-month CPI inflation fell to 2.6% in March from 2.8% in February, close to expectations in the February Report.
• Although indicators of pay growth remain elevated, a significant slowing is still expected over the rest of the year.
• Wholesale energy prices have fallen back since the February Report. Previous increases in energy prices are still likely to drive up CPI inflation from April onwards, to 3.5% for 2025 Q3, but is expected to fall back thereafter.
• Underlying UK GDP growth is judged to have slowed since the middle of 2024 and has been much less volatile than growth in headline GDP – growth was expected to have been around zero in 2025 Q1, well below Bank staff’s projection for headline growth of 0.6%.
• Underlying employment growth has also softened recently and the labour market has continued to loosen. The ratio of vacancies to unemployment has fallen further and is now judged to be below its equilibrium level – the impact of higher Employers’ National Insurance Contributions (NICs) on employment appears to have been fairly small to date.
• Based on the Committee’s evolving view of the medium-term outlook for inflation, a gradual and careful approach to the further withdrawal of monetary policy restraint is appropriate and it will continue to monitor closely the risks of inflation persistence and what the evolving evidence may reveal about the balance between aggregate supply and demand in the economy.
• Monetary policy will need to continue to remain restrictive for sufficiently long until the risks to inflation returning sustainably to the 2% target in the medium term have dissipated further and the Committee will decide the appropriate degree of monetary policy restrictiveness at each meeting.
• The next meeting is on 19 June 2025.

Next 24 Hours Bias

Medium Bullish

The Canadian Dollar (CAD)

Key news events today

Labour Force Report (12:30 pm GMT)

What can we expect from CAD today?

After adding just 7,400 jobs in April, Canada’s labour market is anticipated to shed nearly 12,000 workers in May while the unemployment rate edges higher from 6.9% to 7.0%. The Loonie is all but certain to face extreme price movements during the U.S. trading hours as the highly anticipated U.S. NFPs are also released at the same time, injecting further volatility for USD/CAD.

Central Bank Notes:

• The Bank of Canada maintained its target for the overnight rate at 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70% on 4th June – marking the second consecutive meeting where rates were kept on hold.
• The Governing Council noted that the ongoing increase and decrease of various U.S. tariffs, coupled with highly uncertain outcomes of bilateral trade negotiations and tariff rates remaining well above their levels at the beginning of 2025, placed downside risks on growth and lifted inflation expectations, warranting caution regarding the continuation of monetary easing.
• The higher uncertainty stemmed from the absence of a clear tariff path by the U.S. and persistent threats of new trade actions, which prompted the BoC Governing Council to highlight risks such as the extent to which higher US tariffs reduce demand for Canadian exports.
• Canada’s economic growth in the first quarter came in at 2.2%, slightly stronger than the original forecast, while the composition of GDP growth was largely as expected. Consumption slowed from its very strong fourth-quarter pace, but continued to grow despite a large drop in consumer confidence.
• Housing activity was down, driven by a sharp contraction in resales, while government spending also declined. The economy is expected to be considerably weaker in the second quarter, with the strength in exports and inventories reversing and final domestic demand remaining subdued.
• The labour market has weakened, particularly in trade-intensive sectors, and unemployment has risen to 6.9% while CPI inflation eased to 1.7% in April, as the elimination of the federal consumer carbon tax reduced inflation by 0.6%.
• The Bank’s preferred measures of core inflation, as well as other measures of underlying inflation, moved up, while recent surveys indicate that households continue to expect that tariffs will raise prices and many businesses say they intend to pass on the costs of higher tariffs.
• The Governing Council will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs while proceeding carefully, with particular attention to the risks and uncertainties facing the Canadian economy.
• The Governing Council will focus on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval by supporting economic growth while ensuring that inflation remains well-controlled.
• The next meeting is on 30 July 2025.

Next 24 Hours Bias

Medium Bearish

Oil

Key news events today

No major news events.

What can we expect from Oil today?

Crude oil prices steadied on Thursday with WTI oil futures settling around $63.40 per barrel after hitting an overnight high of $63.98. However, traders remained cautious over slowing growth and weakening demand at a global level, along with increased supply from OPEC+ and price cuts by Saudi Arabia. After declining for two consecutive weeks, oil prices are set to register their first close in the green since mid-May – WTI oil futures were up nearly 4% on the week in early Asia trade.

Next 24 Hours Bias

Weak Bullish

The post IC Markets Europe Fundamental Forecast | 6 June 2025 first appeared on IC Markets | Official Blog.

• BoJ is said to consider smaller reductions to its bond buying.
• BoJ debate centers on quarterly cuts of 200b to 400b yen.
• BoJ’s new bond-buying plan would last to March 2027.

This should be yen negative given that the BoJ would buy more bonds than previously expected under their bond tapering plan.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

Ok, so this humorously depicts President Xi Jinping comfortably enjoying popcorn, observing a heated online feud between Elon Musk and Donald Trump. But what can investors and traders do now?

Investors and traders, here are 3 place to start

S&P 500 technical analysis after Elon and Trump’s childish keyboard war

Trump says on Musk “It’s going very well, never done better.”

ETH Price Prediction: Buy The Dip in ETH (Ethereum), See Video

This article was written by Itai Levitan at www.forexlive.com.

• Prior +0.2%
• GDP Q1 y/y +1.5% vs +1.2% second estimate
• Prior +1.2%

The Q1 GDP got revised higher at every release.

Household final consumption expenditure increased by 0.2% both in the euro area and in the EU. Government final consumption expenditure remained stable in the euro area and decreased by 0.1% in the EU. Gross fixed capital formation increased by 1.8% in both the euro area and the EU. Exports increased by 1.9% in the euro area and by 1.6% in the EU, and imports increased by 1.4% in both the euro area and the EU

This article was written by Giuseppe Dellamotta at www.forexlive.com.

• Prior -0.1%
• Retail sales y/y +2.3% vs +1.3% expected
• Prior +1.5%

Retail sales remain on a strong trend. The increased fiscal spending and ECB rate cuts should keep the momentum going.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

• Decision-making at each meeting remains key.
• Not committing to any rate path.
• ECB keeps full freedom of movement at all coming meetings.

The ECB will now be much more data-dependent as they are near the lower bound of their estimated neutral range (1.75%-2.25%)

This article was written by Giuseppe Dellamotta at www.forexlive.com.

• Lowering rates at a time of high savings and low investments has no effect except a monetary effect.
• I didn’t affect the outcome of the Governing Council meeting with my lone vote.
• We are currently expansive in our monetary policy.
• Lagarde said we are at the end of the cycle, I wanted to discuss whether that is the case.
• Current nominal neutral rate is around 3%.

No surprise here that he dissented as that was telegraphed pretty well in his comments preceding the ECB decision. He’s been the most hawkish member for quite some time now.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

• ECB has achieved a soft landing.
• The best thing for the ECB is to wait and see.
• The rate cutting is nearly done.
• Given uncertainty, you can never say it is done.
• ECB may cut if the economy weakens and inflation falls.
• There are downside risks to growth.
• The ECB is quite confident on forecasts.

The victory laps at the ECB continue…

This article was written by Giuseppe Dellamotta at www.forexlive.com.