EUR: ECB speakers and strong currency guide rate debate – Commerzbank

💡 DMK Insight

The anticipation around ECB members Schnabel and Cipollone’s comments is heating up, and here’s why that matters: traders are on edge about potential rate cuts. With inflationary pressures still a concern, any hints from the ECB could shift market sentiment significantly. If Schnabel and Cipollone signal a dovish stance, we might see a sell-off in the euro as traders adjust their expectations for future rate hikes. Conversely, if they maintain a hawkish tone, it could bolster the euro and put downward pressure on equities. Keep an eye on the euro’s performance against the dollar, especially if it approaches key support levels. A break below those could trigger further selling. But don’t overlook the broader implications—rate cuts could also impact bond markets and risk assets. If the ECB leans towards easing, we could see a ripple effect across European equities and commodities. Watch for volatility spikes in these markets as traders react to the news. The comments are scheduled soon, so prepare for potential swings in your positions.