Dear Reader,

Today's overview of economic news and market action

• Generally muted trading conditions yesterday
• Data-wise, US data surprised to the downside of forecasts
• On the currency front, the yen has made gains
• Meanwhile, dollar is marginally firmer vs. euro and sterling
• EUR/USD is near midpoint of $1.08-1.09
• EUR/GBP continues to trade close to 84p
• Today’s data highlight are the flash PMIs for July

All rates quoted are indicative market rates.

ECB keeping its options open on rates outlook

In the past week we have seen the July/August round of the key central bank meetings get underway, with the European Central Bank (ECB) first up. As expected, its Governing Council kept interest rates unchanged. This means that the Deposit rate remains at 3.75% while the Refi rate stays at 4.25%. 

The ECB meeting for July saw the Governing Council keep its key interest rates unchanged. This means that the Deposit rate remains at 3.75% while the refi rate stays at 4.25%. The ‘hold’ on rates in July follows the 25bps rate cut implemented in June to the main interest rates. This represented its first rate change in six meetings after previously being on a rate hiking cycle.

ECB keeping its options open

In the past week we have seen the July/August round of the key central bank meetings get underway, with the ECB first up. As expected, the Governing Council kept interest rates unchanged. This means that the Deposit rate remains at 3.75% while the Re-fi rate stays at 4.25%.