The European Central Bank decrees its fifth consecutive interest rate cut, sets the price of money at 2.5%, and anticipates that the next monetary decisions are not at all clear. Huge uncertainty". "Uncertainty everywhere".
KUWAIT: The US ISM manufacturing survey fell to 50.3 in February, down from 50.9 and below the predicted 50.6, signaling the impact of tariff concerns on businesses. Employment entered contraction at 47.
The ECB has cut rates five times since June as inflation retreated and economic growth faltered. But with rates slowly approaching a level that no longer restricts economic growth, one might expect an end to the easing cycle.
The EUR/USD pair reached levels not seen since last November, settling not far below 1.0888, the Friday high. The US Dollar’s (USD) sell-off was the result of tepid United States (US) data and mounting fears President Donald Trump’s tariffs will result in an economic setback.
A trade war with the United States is looming and growth ... but we would expect growing disagreement among Governing Council members." The ECB will struggle to keep up with the rapid change ...