ECB came in line with expectations and markets quickly turned their attention to the US data releases. Economists at TD Securities analyze market’s outlook.
ECB statement did not come with much new information
The ECB offered no new information and was not a market mover.
In this data dependent and geopolitically driven world, CBs will continue to sound vigilant but ultimately remain tied to data outcomes. Accordingly, attention quickly turned to US data where signs of moderating inflation and good growth helped moderate US yields and the USD.
A resilient US economy coupled with a soft landing ex-US (with China fiscal impulse and growth upgrades) can set the ground for risk taking in the coming weeks and a weaker USD.
Source: https://www.fxstreet.com/news/resilient-us-economy-coupled-with-soft-landing-ex-us-can-set-the-ground-for-risk-taking-and-a-weaker-usd-tds-202310261415