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Investing.com – The European Central Bank has now announced its interest rate decision, raising it according to experts’ expectations, in light of the bank’s attempt to control prices through an incremental increase in European interest rates, which threatens a recession in the coming period.
The decision changed the scene in the markets now, as the euro reversed its direction now, after it was bullish before the data was released, it turned down now, while the dollar now turned to the upside after it was declining before the data was released, but gold consolidated its gains after the data.
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interest decision
Announced at 50 basis points, rising to 3.50% in line with experts’ expectations and market pricing.
It rose to 3%, up 50 basis points.
It rose from 3.25% to 3.75%, also up 50 points.
European banks are at risk
European Central Bank Vice President Luis de Guindos said on Tuesday that some European Union banks may be vulnerable to financial stress due to higher interest rates.
He added that the ECB cannot rule out that some lenders may be at risk because of their business models.
He highlighted the potential conflict between the European Central Bank’s mission to reduce inflation and the potential damage to some financial institutions from higher interest rates.
Lagarde’s remarks last week
European Central Bank President Christine Lagarde pledged last week to do “whatever it takes” to restore price stability, during a symposium at the World Trade Organization headquarters in Geneva on Wednesday.
“We will restore price stability and we will do whatever it takes,” Lagarde said, referring to the high inflation in most eurozone countries, while the central bank she heads has a mandate to combat it.
Lagarde stressed that “the most affected by the increase in inflation are the disadvantaged, the vulnerable, and the least paid, it is women.”
euro next period
Economists at Societe Generale Bank expected that the pair would suffer if it managed to break the support near the level of 1.0520 points.
And the experts at the bank continued that they will monitor the movements of the euro-dollar pair during the coming period and whether it is able to regain the level of 1.0910 points or 1.0940 points, but if the pair fails to return, it may retreat again and decline clearly if it breaks the bottom at 1.0520 points, as it is likely in this The case is for a deeper decline for the euro-dollar pair towards the next strong support near 1.0330 and 1.0220, or 1.0200 points, which is the lowest level since last September.
Experts at the Dutch bank pointed out that the euro does not have many weapons to fight a force at the present time, especially with the absence of important economic data affecting its trading in the currency markets.
Euro, gold and dollar now
The Euro interacted with the data just released, as it is now declining by 0.2%, now reaching 1.0554 levels.
It rose during the current moments to reach levels near $ 1933 an ounce, by 0.75%.
And the yellow metal futures rose, and now recorded $ 1937 an ounce, by 0.3%.
And it rose at the present moment to the levels of 104.33 points, an increase of 0.1%.
