As widely anticipated, the ECB kept its policy unchanged today. Analysts at TD Securities note that there is minimal new information for the Euro (EUR) to digest from this development.
ECB is a bit of a nothing burger for the EUR
As widely predicted, the ECB maintained its policy status quo. The statement aligned closely with expectations, featuring no discernible alterations to the language used.
Inflation forecasts underwent a slight downward revision, providing additional indications that rate cuts are on the horizon.
President Lagarde expressed strong indications that the ECB is unlikely to implement a cut in April, with clear suggestions pointing towards the possibility of such measures in June.
The impact of the ECB on the EUR today is minimal, as attention is expected to shift towards US data and other global factors, rendering it somewhat inconsequential.
Our forecast maintains an expectation for an upward break beyond 1.1000 in Q2, reflecting a more widespread underperformance of the USD.
