Euro: ECB cautious as euro area outlook stays fragile – BNY

The post Euro: Upside bias against US Dollar as ECB repriced – Scotiabank appeared on BitcoinEthereumNews.com. Scotiabank strategists Shaun Osborne and Eric Theoret report the Euro (EUR) is slightly softer versus the US Dollar (USD) but supported by a sharp recovery in yield spreads and stronger German industrial production. Renewed hawkishness from European Central Bank (ECB) policymakers is lifting Euro area rate expectations. They see near-term upside for EUR/USD, with technicals pointing to a drift toward 1.15 within a 1.1400–1.1500 range and limited resistance before 1.1580. Hawkish ECB supports Euro “Bearish/neutral – the recovery in the RSI is important, reflecting a clear fade in bearish momentum and a drift back toward the neutral threshold around 50. The near-term balance of risk appears to favor gains and a drift toward 1.15 and we note the absence of any material resistance ahead of 1.1580. The medium-term trend is flat, and we look to a near-term range bound between 1.1400

The post Japanese Yen: Japan denies rate-pressure claims as data mixed – BNY appeared on BitcoinEthereumNews.com. Geoff Yu notes Japan’s Growth Strategy Minister Minoru Kiuchi rejected reports that the government is trying to push interest rates lower or pressure the Bank of Japan (BoJ). He emphasizes continued coordination with the BoJ, while recent data show firm nominal wage gains but weaker real earnings, soft household spending, and improving coincident indicators, with the Japanese Yen briefly firmer versus the Dollar. Policy stance steady, data send mixed signals “Japan’s Growth Strategy Minister Minoru Kiuchi has rejected media reports that Prime Minister Sanae Takaichi’s government is trying to push interest rates lower, saying there is “absolutely no truth” to claims that fiscal expansion is aimed at pressuring the BoJ.He said the omission of “fiscal consolidation” from the draft basic policy guidelines was not intended to weaken fiscal discipline, but to present fiscal susta

The post Polish Zloty: Dovish NBP tone risks downside – ING appeared on BitcoinEthereumNews.com. ING economists Rafal Benecki and Adam Antoniak argue that reduced prospects of further tightening by the European Central Bank (ECB) and Federal Reserve (Fed) should ease external pressure on the Zloty. However, they warn that market concerns over a potentially more dovish National Bank of Poland (NBP) are PLN-negative, and with Euro adoption distant, any softening in NBP rhetoric could pose greater downside risks compared with the Forint’s convergence support. PLN vulnerable to softer NBP tone “As the likelihood of further rate hikes from the European Central Bank has diminished and additional monetary tightening by the Federal Reserve this year appears increasingly doubtful, the external negative pressure on the zloty should diminish.” “Still, the FX market appears worried that the NBP may turn more dovish soon, which is PLN negative.” “By contrast, the National Bank of Hungary’s dovish r

The post Euro holds steady as traders assess Fed and ECB interest rate paths appeared on BitcoinEthereumNews.com. EUR/USD trades in a narrow range on Tuesday as traders await greater clarity on the Federal Reserve’s (Fed) and European Central Bank’s (ECB) interest rate paths. At the time of writing, EUR/USD is trading around 1.1436, little changed on the day. Inflation risks have moderated as Oil prices have fully unwound their US-Iran war-driven rally following last month’s interim peace agreement, which reopened shipping through the Strait of Hormuz. However, policymakers on both sides of the Atlantic continue to signal that monetary policy is likely to remain restrictive in the coming months, with inflation running above their respective 2% targets. ECB Governing Council member Fabio Panetta said on Tuesday that the “outlook remains fragile,” adding that “upside inflation and downside growth risks remain.” ECB Governing Council member Pierre Wunsch said on Monday that “it seems that

Central banks' shift from the US dollar signals a move towards a multipolar monetary system, with increased reliance on gold and the euro. The post OMFIF survey shows central banks planning to cut US Dollar exposure for first time ever appeared first on Crypto Briefing.

The post Euro: ECB support limited by spreads – NBC appeared on BitcoinEthereumNews.com. National Bank of Canada ’s (NBC) Stéfane Marion and Kyle Dahms note the Euro (EUR) fell toward 1.13 in June despite a more hawkish European Central Bank (ECB), underscoring that EUR/USD remains driven by relative rates. Widening 2-year Bund–Treasury spreads weigh on the pair, while speculative positioning is now more balanced. They target EUR/USD at 1.18 by year-end, assuming broad Dollar moderation as Fed repricing matures. Euro needs Dollar relief “The euro has weakened despite a more hawkish ECB, reinforcing that EUR/USD remains mostly a relative-rates story. Short-term spreads have moved against the common currency, while softer inflation reduces the need for a more aggressive ECB response. Still, positioning is now less stretched than a quarter ago.” “In the near term, the euro still needs dollar relief to reach our year-end target.” “Short-term yield spreads remain the clearest headwind. The

The post ECB gives eurozone banks until October to draft AI cyber defenses appeared on BitcoinEthereumNews.com. Big-time lenders in the eurozone have until October 31 to present an action plan to the European Central Bank (ECB), according to an order from the regulator to ensure that the region’s biggest lenders all score passing grades on their preparedness to defend against AI-driven cyberattacks.  The warning from the apex bank on the Old Continent arrives as the newest AI models have routinely gotten better at finding and exploiting software flaws faster than anyone can patch them, as noted in earlier Cryptopolitan reports.  Which European banks need to come up with AI action plans? The ECB instruction that became public on July 7 was sent as letters to bank chief executives. However, the missive matters to every stakeholder, including anyone who moves money through the European financial system. Claudia Buch, who sits at the head of the ECB’s supervisory board, told CEOs to spell

This shift may alter global financial stability, influence currency valuations, and reshape international economic power dynamics. The post Central banks to cut US dollar holdings, boost gold and euro reserves: Reuters appeared first on Crypto Briefing.