Collinson FX: June 7: ECB (European Central Bank) cuts rates for the first time in five years
by Collinson FX 10 Jun 09:00 UTC
10 June 2024
Young sailors in the SailGP Inspire program try out the Armstrong Wing Foil board on Race Day 1 of the ITM New Zealand Sail Grand Prix in Christchurch, New Zealand. March 2024 © Armstrong Foils
June 7: ECB cuts rates
The ECB (European Central Bank) cuts rates for the first time in five years, as expected, offering relief to borrowers. This has been an exercise in economics, that the best cure for inflation, is recession. The US, Canada and Australia/NZ are also employing this ‘tried, tested and proven’ economic strategy. The pain for borrowers is set to continue in the US, Australia and New Zealand.
Markets anticipate that the ECB will cut again, at least once, this year. The Fed is not expected to consider cuts until later in the year and the RBA and RBNZ are projecting no relief until 2025. This was an entirely expected move from the ECB and markets hardly moved. Bond yields drifted lower and currencies tread water. The EUR traded 1.0870, while the GBP still looks to hit 1.2800, once again.
The ECB actions had little impact on commodity currencies, with the NZD trading just below 0.6200, while the AUD regained 0.6650. The Australian trade surplus continued, but with falls in both exports and imports, while markets await today’s key trade data from China. The important Non-Farm Payroll number, set to be released in the US tonight, is expected to show a weaker labour market.
For the latest and recent market commentaries from Collinson & Co see collinsonco.com/news-updates
Catch the new look Collinson FX website at www.collinsonco.com
Disclaimer: The details expressed in the Collinson FX website and accompanying documents or transmissions are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Collinson Forex Ltd accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the information contained or related to this site
Collinson Forex offers valuable insights and solutions to boat enthusiasts and industry professionals alike. They offer a range of tailored currency services, designed to support individuals and businesses involved in the marine sector, facilitating seamless international transactions and optimizing financial operations. Founded in 1994, Collinson Forex is a trusted financial partner within the marine community. collinsonco.com/business-forex
Collinson Crowdfunding provides innovative equity crowdfunding services, aiming to connect businesses looking to raise capital with investors who are looking for new opportunities. They do this by offering a website for companies to make share offers and support to streamline the offer process. For investors, Collinson Crowdfunding offers a simple way to invest in exciting businesses. collinsonco.com/crowdfunding
Contact Collinson on 0800 338 838