ECB Rate Decision Is Priced In, Lagarde Guidance Is Not

The ECB rate decision is expected to bring a 25 basis point hike, and with that priced in, Lagarde guidance drives the euro. Fiona Cincotta, StoneX Senior Market Analyst, breaks down what the European Central Bank decision and the language around it mean for the euro. Eurozone inflation rose to 3.3% year on year in August from 2.9% in July, while core inflation dipped to 2.4% from 2.5%. Energy inflation surged from 10.3% to 14.3%, and eurozone bond yields at multi-year highs are already tightening financial conditions without further policy action. Investors are pricing almost two additional hikes over the next twelve months, with U.S. inflation data landing days after the meeting. Discover Actionable Insights with the latest Market Outlook Reports: https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_fiona_cincotta&utm_content=share 00:00 - The Hike Is the Easy Part 00:27 - Energy Inflation Bites Back 01:20 - Markets Price Two More Hikes 02:08 - Eurozone Yields Do the Work 02:40 - Lagarde's Two Possible Paths 03:28 - U.S. Data Meets a Fragile Euro Like and subscribe for more financial market insights. #ECB #StoneX #FionaCincotta #Forex --------- Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social