European Central Bank Cuts Interest Rates By 0.25%, But Projects Inflation 'Above Target Well Into Next Year'
Portfolio Pulse from Piero Cingari
The European Central Bank (ECB) cut interest rates by 25 basis points, marking the first reduction since 2016 for main refinancing operations and marginal lending rates. Despite the cut, the ECB projects inflation to remain above target well into next year. The euro, tracked by the Invesco CurrencyShares Euro Currency Trust (NYSE:FXE), rose slightly following the announcement.
June 06, 2024 | 12:29 pm
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The Invesco CurrencyShares Euro Currency Trust (NYSE:FXE) saw a 0.1% rise in the euro against the dollar following the ECB's announcement of a 25 basis point rate cut and upward revisions to inflation projections.
The ECB's rate cut and upward revision of inflation projections are seen as hawkish, leading to a slight increase in the euro's value, positively impacting FXE.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80