By Giles Coghlan, Chief Currency Analyst at HYCM
As we got the news that eurozone PMI’s decreased in November from 50.6 to 50.3 the spillover impact from the manufacturing sector to the service sector is at the heart of the decline. With still no confirmation of a phase 1 US-China trade deal risks to the eurozone remain tilted to the downside. Christine Lagarde’s first policy speech passed without any major impact. Christine Lagarde stated that:
- The ECB will start strategic review of its monetary policy in the ‘near future’,
- The ECB will ‘continuously monitor the side effects of its policies,
- Reiterated a call for fiscal policies.
This speech from Lagarde gave very little away and the next monetary policy speech from Lagarde now will be December 12 with the ECB interest rate decision.
