News & AnalysisCareer
Trading
Explore a wide range of markets with competitive pricing, deep liquidity, and advanced trading tools.
Learn More 
Platform
Trade seamlessly with TMGM's powerful platform, built for speed, precision, and a superior trading experience.
Learn More Trading Platform
Trading Tools
Academy
Learn the fundamentals of trading with beginner-friendly resources, including guides, webinars, and market insights.
Learn More News & Analysis
Get real-time market updates and expert analysis to stay ahead of trading opportunities
Learn More News & Analysis
About
Learn what sets TMGM apart — our global presence, regulatory strength, and commitment to innovation in trading.
Learn More Why Choose TMGM
Sponsorship
Lagarde speech: Governing Council weighed whether a rate rise was appropriate
With key interest rates held steady at the October policy meeting, European Central Bank (ECB) President Christine Lagarde sets out the reasons for the decision and takes questions from the press.
Lagarde outlines the policy assessment
"We have seen an increase in indirect effects from the energy price surge."
"We are not seeing a risk of second round effects in addition to what's in the projections."
"Cost of long-term financing clearly increased vs September."
"Governing Council debated whether a rate hike was appropriate."
"Based on uncertainty, unchanged underlying inflation, Governing Council decided unanimously to hold."
"Measured approach remains appropriate at this point in time."
EUR/USD edges off session lows
Following these comments, EUR/USD recovered modestly from its session lows. The pair was last trading at 1.1135, down 0.15% on the day.
Euro essentials explained
Used by the 20 European Union countries within the Eurozone, the Euro is the world’s second most actively traded currency after the US Dollar. Its share of all foreign exchange transactions stood at 31% in 2022, with daily turnover averaging more than $2.2 trillion. An estimated 30% of all transactions involve EUR/USD, making it the world’s most actively traded currency pair. Next come EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
Based in Frankfurt, Germany, the European Central Bank (ECB) serves as the Eurozone’s reserve bank, setting interest rates and overseeing monetary policy. Maintaining price stability is the ECB’s core mandate, whether through controlling inflation or stimulating growth. Raising and lowering interest rates is its principal policy tool. The Euro generally benefits when rates are relatively high, or expected to rise; the reverse also applies. Monetary policy is decided by the ECB Governing Council at eight meetings each year. The decision-makers comprise the heads of the Eurozone’s national banks and six permanent members, among them ECB President Christine Lagarde.
Measured using the Harmonised Index of Consumer Prices (HICP), Eurozone inflation is a key economic indicator for the Euro. An unexpectedly strong rise in inflation, particularly above the ECB’s 2% target, requires the central bank to increase interest rates to bring price pressures back under control. When the region’s interest rates are relatively high compared with those elsewhere, global investors find it a more attractive destination for their money. This generally supports the Euro.
By providing a measure of economic health, data releases can affect the Euro’s performance. GDP, manufacturing and services PMIs, employment figures and consumer sentiment surveys are among the indicators that can steer the single currency. Economic strength supports the Euro by drawing in more overseas investment. It may also prompt the ECB to raise interest rates, directly strengthening the currency. Weak economic readings, by contrast, are likely to weigh on the Euro. Particular attention is paid to figures from Germany, France, Italy and Spain, the euro area’s four largest economies, which together represent 75% of the Eurozone economy.
The Trade Balance is another important release for the Euro, showing the gap between a country’s export earnings and its spending on imports over a specified period. Strong foreign demand for a country’s exports creates additional demand for its currency as overseas buyers seek to purchase those goods, lifting its value. A positive net Trade Balance therefore supports a currency, while a negative balance has the opposite effect.
POPULAR ARTICLES
1Euro Stays on the Back Foot Against British Pound After ECB Leaves Rates Unchanged2Indonesia: IndoGBs face pressure from MSCI spillover – DBS3Hungary: Fiscal consolidation and euro plan come into focus – Societe Generale4Lagarde speech: Interest rate path is quite clear5Lagarde speech: Governing Council weighed whether a rate rise was appropriate6Euro drops to 17-month low as US PCE inflation quickens and ECB leaves rates unchanged7Lagarde speech: Confidence could suffer from fiscal uncertainty8US PCE inflation and GDP bolster hawkish Fed bets, weighing on Canadian Dollar9Bank of Canada: Rabobank flags risk of further tightening
Connect With Us
Contacts
Phone: +61 2 8036 8388
Fax: +61 2 8036 8388
Email: support@tmgm.com
The information provided on this website is of a general nature only and does not constitute personal financial advice. Before acting on any information on this website, you should consider the suitability of the information in relation to your objectives, financial situation and needs. Investing in CFDs and FX Margin Contracts carries significant risks and is not suitable for all investors. You may lose more than your initial deposit. You do not own, or have, any interest in the underlying asset. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. It is important that you read and consider the disclosure document before you acquire any product listed on the website. The information and advertisements offered on this website are not intended for use by any person in any country or jurisdiction where such use would be contrary to local laws and regulations. The Products and Services offered on this website are not intended for residents of the United States, Malaysia and Thailand.
TMGM is authorized and regulated in various jurisdictions.
Trademax Australia Limited, trading as TMGM, is regulated by the Australian Securities and Investments Commission (ASIC), AFSL no. 436416 and is located at Level 28, One International Tower, 100 Barangaroo Avenue, 2000 Sydney, NSW Australia.
Email: support@tmgm.com.au
Trademax Global Limited, trading as TMGM, is authorized and regulated by the Vanuatu Financial Services Commission (VFSC), registration number 40356 and registered at 1276, Kumul Highway, Port Vila, Vanuatu, Republic of Vanuatu.
Email: support@tmgm.com
Trademax Global Markets (SE) Limited, trading as TMGM, is authorized and regulated by the Financial Services Authority (FSA) of Seychelles, with license number SD224. The company is registered at Office No 13, Providence Estate ABIS Centre, Mahe, Seychelles.
Email: support@tmgm.com
Trademax Global Markets (International) Pty Ltd, trading as TMGM, is authorized and regulated by the Financial Services Commission, Mauritius (FSC) with license no. GB22201012, and registered at 33, Edith Cavell Street C/o IQ EQ Fund Services (Mauritius) Ltd Port Louis, 11324 Mauritius.
Email: support@tmgm.com
Copyright © TMGM. All rights reserved