FXStreet Forex
3 Jun 2026, 15:02 GMT
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ING’s Padhraic Garvey and Michiel Tukker stress that Eurozone real rates are increasingly driven by structural forces such as fiscal expansion and record bond supply. They point to rising 10Y euro implied real rates since 2024, helped by German spending plans.
FXStreet Forex
3 Jun 2026, 12:51 GMT
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DBS Group Research economist Radhika Rao argues that Eurozone markets face a stagflationary shock from US-Iran tensions that will hit Europe harder than the US, pushing the European Central Bank (ECB) to tighten policy earlier.
FXStreet Forex
3 Jun 2026, 12:16 GMT
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European Central Bank (ECB) Vice-Chair of the Supervisory Board Frank Elderson said during the European trading session on Wednesday that the balance of risks has clearly deteriorated due to Middle East conflicts.
ForexLive
3 Jun 2026, 11:36 GMT
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Longer war increases likelihood of second-round effectsI don't see second-round effects yetThe balance of risks has clearly deterioratedECB's Elderson warned that a prolonged conflict in the Middle East increases the risk that today's energy-driven inflation shock evolves into broader and more persistent price pressures, reinforcing expectations that the ECB will raise interest rates at its June meeting.Elderson said that a longer war would increase the likelihood of so-called "second-round effe...
FXStreet Forex
3 Jun 2026, 11:15 GMT
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The European Central Bank (ECB) could tighten monetary policy sooner than previously expected, according to the latest Reuters poll of economists.
ForexLive
3 Jun 2026, 11:02 GMT
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Medium-term inflation pressure is basically unchangedIran war could increase pressure on the Swiss FrancThere's an increased willingness to intervene in FXI expect growth revival in the medium-termSNB's Chairman Martin Schlegel struck a cautious but relatively balanced tone, arguing that while the US-Iran conflict and the resulting surge in energy prices are creating near-term inflation risks, medium-term inflation pressures in Switzerland remain largely unchanged. Schlegel noted that higher ene...
FXStreet Forex
3 Jun 2026, 11:01 GMT
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Swiss National Bank (SNB) Chairman Martin Schlegel said during the European trading session on Wednesday that the central bank has increased its readiness to intervene in the Forex market.
ForexLive
3 Jun 2026, 09:00 GMT
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Services PMI 47.7 vs 46.4 prelimPrior 47.6Composite PMI 48.5 vs 47.5 prelimPrior 48.8Despite the troubles in France, the overall Eurozone services economy managed to hold up in May. However, private sector business activity as a whole fell to an 18-month low and marked back-to-back months of contraction for the first time since the end of 2024.Looking to the services sector, total new order inflows fell again for a third straight month. And while slowing from April, the pace of decline was nonet...
FXStreet Forex
3 Jun 2026, 07:36 GMT
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Commerzbank analysts Michael Pfister and Norman Liebke preview Swiss inflation for May, expecting headline at 0.6% versus consensus 0.7% and core at 0.3%. They stress that recent Gross Domestic Product (GDP) data support this benign outlook.
ForexLive
3 Jun 2026, 07:27 GMT
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EUROPEAN SESSIONIn the European session, we don't have much on the agenda other than the final Services PMIs for the major Eurozone economies and the UK. The data is not going to change anything for the respective central banks, so the market reaction will likely be muted.AMERICAN SESSIONIn the American session, we get the US ADP report and the US ISM Services PMI. The ADP is expected at 120K vs 109K in the prior month. The US jobs data has been pointing to a stable/strengthening labour market f...
FXStreet Forex
3 Jun 2026, 05:34 GMT
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European Central Bank (ECB) policymaker and the head of Belgium's central bank, Pierre Wunsch, said in an interview with Financial Times (FT), released on Wednesday, that the likelihood of central bank tightening monetary conditions in the policy meeting next week will remain firm, even if the Unite
ForexLive
3 Jun 2026, 05:19 GMT
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Discussion on policy setting in June "will be quite easy" if Middle East conflict remains unresolvedIf a peace deal is confirmed just before the meeting, it will be part of the discussionHowever, we won’t know whether it will last or be credibleBut if a peace deal is confirmed, any policy talk "might be a bit less easy"There is still a case to raise interest rates if so, but just a bit less strongAt some point, we cannot let the market do all the lifting; we need to take a stanceWe may end up ...
FXStreet Forex
2 Jun 2026, 16:58 GMT
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ABN AMRO economists Bill Diviney and Rose Heaulme note that Eurozone headline inflation rose to 3.2% in May, with core inflation surprising at 2.5%. Energy remains the main driver, while food inflation eased.
FXStreet Forex
2 Jun 2026, 15:35 GMT
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Commerzbank’s Dr. Vincent Stamer argues persistent Euro area inflation above 3% and rising core pressures make an European Central Bank (ECB) rate increase unavoidable. He cites firms’ intentions to pass on higher energy costs and elevated consumer inflation expectations.
FXStreet Forex
2 Jun 2026, 15:23 GMT
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Société Générale economist Sam Cartwright notes Euro area headline inflation rose to 3.2% year-on-year in May, with core inflation at 2.5%. Services, not energy, led the increase, partly due to Easter timing effects.