EU Blames Global Slowdown - Is this a Hint at the ECB? - FX Leaders News
EU looks worried about the economy now

EU Blames Global Slowdown – Is this a Hint at the ECB?

Posted Wednesday, November 28, 2018 by
Skerdian Meta • 1 min read

News has come out just now that the European Union is blaming the global economy for the slowdown this year. A source from the EU has said that the global economic expansion is increasingly under threat. The Euro has lost a few pips but I doubt that’s because of this comment.

Everyone was praising the economic growth at the beginning of this year and they were forecasting even higher growth for the years to come. Now, everyone is worried about the economy. The Chinese officials sounded worried about growth in China last week and, this week as well, now it is the EU.

Donald Trump’s tariffs might be a factor for this slowdown, although I don’t think that is the main reason. Perhaps this is just a cycle – every booming period such as the one we witnessed last year has to be followed by a cooling off before the next boom.

Anyway, what’s important here is the fact that this might be a sign for the European Central Bank. ECB officials have acknowledged the soft patch recently, although they lean more towards the hawkish side. So, this might be a call for the ECB to keep its loose monetary policy and the stimulus going.

That would be bearish for the Euro, especially if the ECB starts sounding increasingly dovish. If this sort of rhetoric persists, then the Euro is likely to continue the bearish trend into next year.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta is our Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of