Eurozone M3 Money Supply (3m) remains unchanged at 2.9% in December

💡 DMK Insight

The Eurozone’s M3 Money Supply holding steady at 2.9% is a crucial indicator for traders right now. With inflationary pressures still a concern, this unchanged figure suggests that the European Central Bank (ECB) might maintain its current monetary policy stance. For forex traders, this stability could mean a lack of volatility in the euro against major currencies, particularly the USD. If the ECB decides to adjust rates based on future M3 readings, we could see significant movements. Keep an eye on the 1.05 level for EUR/USD; a break below could signal bearish momentum, while a rebound might indicate a bullish reversal. However, it’s worth noting that stagnant money supply growth could also reflect underlying economic weaknesses, which might not be fully priced in by the market. Traders should watch for any shifts in sentiment or economic data releases that could impact ECB policy. The next inflation report will be pivotal, as it could either reinforce or challenge the current monetary stance.