Forex Analysis & Reviews: 28.03.2023 - ECB will continue raising...

28.03.2023 12:23 PM

ECB will continue raising interest rates

Euro continues to rise as more and more people believe that the European Central Bank will not stop raising interest rates aggressively.

Just yesterday, ECB executive board member Isabelle Schnabel revealed that she had pushed for another rate hike during this month's meeting and said she would continue to do so in the future. She also commented that the governing council should avoid voicing clear monetary policy stance after the half-point increase in borrowing costs last March 16.

Earlier, ECB President Christine Lagarde gave verbal assurances that rates will continue to increase if ECB forecasts prove realistic. Schnabel's stance sheds light on how the central bank's decision to raise borrowing costs is treating the outbreak of financial instability in the banking sector that has plagued banks from the US to Switzerland. Its arguments prove the resilience of financial markets and confirm the health of eurozone banks.

The actions of ECB officials also signal how inflation is perceived by ECB officials. In this sense, Schnabel's stance points to a possible future approach to monetary policy contained in Lagarde's statement last week - there is no compromise between price stability and financial stability.

The ECB president gave a cautious signal of tightening after the March decision, which was overshadowed by the crisis around Credit Suisse. On the eve of the ECB rate hike, Swiss authorities offered a liquidity lifeline to the affected bank before UBS took over completely. But speaking to lawmakers in the European Parliament, Lagarde said it would have been inappropriate to give a harsher signal

Hawkish politicians, including Schnabel, have since taken a tougher stance. De Nederlandsche Bank Governor Klaas Knot recently noted that without the turmoil in the banking sector, inflation forecasts would allow for further interest rate hikes as early as the next meeting in May. "I still think we need to make another move in May, but I don't know the extent of it," he noted.

Against this backdrop, it is not surprising that euro continued to rise after Friday's big drop.

Current technical picture shows that EUR/USD bulls have all the chances to continue growth towards new March highs. But for this to happen, the quote has to stay above 1.0800. Only by that will the pair be able to go beyond 1.0840 and rise to 1.0880 and 1.0930. In case of a decline below 1.0800, the pair will approach 1.0760 and 1.0725.

In GBP/USD, bulls are ready to keep storming the monthly highs as Bank of England Governor Andrew Bailey maintained a hawkish stance yesterday. However, to keep the momentum, the quote has to stay above 1.2280 and break through 1.2340. That will give a certain rise to 1.2390 and 1.2450. Should bears take control of 1.2280, a breakdown will occur, which will push the pair down to 1.2220 and 1.2160.

你今天已经点赞上这篇文章了

*这里的市场分析是为了增加您对市场的了解，而不是给出交易的指示。

If you have any content questions, please contact editorial-board@instaforex.com

Fundamental analysis

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025

该作者的更多文章

电子邮件订阅

EURUSD

Euro vs US Dollar

选择时间框架

分钟

小时

天

周

开始交易

通过InstaForex赚取加密货币汇率变动的收益。

下载MetaTrader 4并开启您的第一笔交易。

推荐文章

現在是否是 Christine Lagarde 離開職位的合適時機？

USD/CAD. 分析與預測

股市認為特朗普的關稅遊戲不會產生重大影響 (#NDX 和 #SPX 差價合約的增長可能會繼續)

市場在玩一場危險遊戲

6月4日要注意什麼？給初學者的基本事件解析

GBP/USD 概況 – 6月4日：特朗普只對大魚感興趣

歐元/美元概況 - 6月4日：言語，言語……行動在哪裡？

美國經濟將比其他國家受到關稅影響更大

歐元/美元（EUR/USD）。試圖突破1.14水平失敗：空頭撤退但不放棄

歐元：困境來襲——敞開大門！

Top analytics