DFE - Rates Spark: Why September Looks Like A Good Month For An ECB Rate Cut
2024-07-24 06:00:00 ET
Summary
- The ECB’s Luis de Guindos identified September as a good month for a rate cut decision as new macroeconomic projections will be in.
- PMIs are coming in for the US and Europe and will be watched for signs of economic weakness.
- As the Harris vs Trump discussion fades slightly, we gear up for some key data and corporate results in the coming days.
By Padhraic Garvey, CFA | Michiel Tukker | Benjamin Schroeder
ECB speaker in favour of a September rate cut decision
Euro rates found themselves lower on Tuesday, helped by dovish commentary in the morning from the European Central Bank's Luis de Guindos. He emphasised that the September meeting will have new macroeconomic projections, which will help with a rate cut decision. Later in the day, the ECB published the consumer confidence survey, which showed an improvement from -14 to -13 and reflected the gradual but fragile recovery path of the eurozone economy. As long as growth dynamics don't worsen significantly, markets will need to see less sticky inflation numbers to be fully on board with a September cut....
Rates Spark: Why September Looks Like A Good Month For An ECB Rate Cut