Central banks hit pause on easing signals, ECB faces pressure with potential rate cuts.

From Investing.com: 2025-01-30 00:16:00

Central banks like the Fed, Bank of Canada, and Riksbank are pausing their easing signals, keeping policy rates restrictive despite previous large-scale easing. The European Central Bank (ECB) is facing pressure, with markets pricing in 90bps of cuts in 2025. Any hint of a slowdown in ECB easing could trigger a EUR/USD short squeeze. The Fed, in particular, seems to be in a ‘do nothing’ mode, with Chair Jerome Powell indicating that the current policy stance is well calibrated. BoC and Riksbank are also backing away from further rate cuts, signaling a shift in central bank policy.



Read more at Investing.com: EUR/USD: ECB Rate Guidance Clouded as Central Banks Hit Pause