ECB officials signal summer rate cut as growth outlook weakens
Multiple ECB governors indicated they are ready to support a rate cut at the June meeting if inflation continues to cool.
Multiple ECB Governing Council members signalled they are ready to support a rate cut at the June meeting, provided inflation continues to descend sustainably toward target. The dovish camp is clearly widening.
Growth indicators remain subdued while services-inflation momentum has begun to ease, raising the council's confidence. The euro fell 0.3% versus the dollar to 1.0815.
Bond markets are now pricing a more aggressive easing cycle, with German 10-year yields falling to a two-week low. Lagarde's upcoming remarks and May CPI will shape the next move.
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US Tariffs Drive Steep Drop in EU Exports for Second Month
European Union exports are facing headwinds from US tariffs, with declines continuing for a second consecutive month. The EU's trade surplus has shrunk and shipments to the US have declined significantly.
US Tariffs Drive Steep Drop in EU Exports for Second Consecutive Month
US tariffs have driven a steep decline in EU exports for the second straight month, shrinking the bloc's trade surplus by 60%. The data underscores the mounting economic cost of the transatlantic trade dispute for European exporters.