Euro is up against the pound this morning, recovering from a slight drop after the ECB said that it would increase stimulus measures and would likely cut rates, despite already being at historic lows. It seems likely therefore that, at the next meeting on 12th September, we will see an announcement of further easing measures. Draghi pointed to the economic situation getting ‘worse and worse’, with no sign yet of an uptick in 2020.
In its press release, the ECB said that ‘the Governing Council expects the key ECB interest rates to remain at their present or lower levels at least through the first half of 2020, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to its aim over the medium term.’
In a positive sign, Italian and French consumer confidence have both come in above expectations this morning. There are no more economic releases scheduled for today, so we will likely see most influence from external factors.
