ECB holds first meeting of the year as rates expected to stay unchanged | Metals Mine

  • ECB holds first meeting of the year as rates expected to stay unchanged

    From rankiapro.com

    European yield curves have steepened: short-term yields have edged higher amid improving growth prospects, while longer-dated yields have sold off due to expectations of increased issuance in Germany. We maintain a short position in German bonds, as improved sentiment, supportive fiscal policy, and higher issuance could push yields higher. We remain cautious on France, given the ongoing political instability. We prefer exposure to Italy, Spain, and Greece. Peripheral sovereign bonds continue to show resilience, with Spain benefiting from lower energy costs and Italy maintaining solid fiscal discipline alongside ... (full story)

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ZforexCM
Feb 4, 2026 1:49am
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The euro is holding near 1.1820 as markets head into the ECB’s February meeting with near-unanimous expectations for rates to remain unchanged. Expert commentary points to a central bank that is comfortable staying on hold while growth improves and inflation stays close to target. However, the euro’s recent strength is emerging as a quiet constraint, reinforcing the ECB’s cautious, wait-and-see stance rather than encouraging any hawkish shift.

With policymakers stressing flexibility and data dependence, EUR/USD is consolidating near recent highs. Upside momentum remains intact, but sustained euro appreciation is increasingly viewed as a factor that could tilt risks toward easing later this year if disinflation accelerates.

Support & Resistance Levels
R1: 1.1870 | S1: 1.1780
R2: 1.1910 | S2: 1.1730
R3: 1.1970 | S3: 1.1690
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