ECBs Holzman: Supports a 75 basis point hike if situation stays the same

ECBs Holzmann via Econostream, says that if the situation remains the same before the December 15 meeting, he would support a 75 BP hike. However, if there is a major HICP reduction, could be swayed back to 50 BPS.

• No major recession seen for now
• On QT sees strong concensus that we should start small to test the market
• Should start with APP. PEPP much later
• Still very much concerned with de-anchoring of inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term expectations.
• Adds that 75 bps would bring them in a neutral area.

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The EURUSD EUR/USD The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars. Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency, be The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars. Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency, be Read this Term has wandered higher in the NY session but has reversed back lower as the time ticks to the London fixing. The pair is tradin at 1.2040. The price moves below the 200 hour MA earlier today (green line) along with the 38.2% of the move up from the November 10 low (at 1.0272). The 50% of the same move is at 1.02076 and is the next downside target on further weakness.