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The European Central Bank is close to achieving inflation targets, and short-term trend analysis of spot gold, silver, crude oil and foreign exchange on April 22
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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Market Review]: The ECB is close to achieving inflation targets, and the short-term trend analysis of spot gold, silver, crude oil and foreign exchange on April 22." Hope it will be helpful to you! The original content is as follows:
Global Market Review
1. European and American market trends
The top three U.S. stock index futures rose, and Dow futures rose temporarily 0.80%. The European Stoke 50 index fell 0.33%, the German DAX index fell 0.32%, the UK FTSE 100 index rose 0.05%, and the French CAC40 index fell 0.24%.
2. Market news interpretation
The ECB is close to achieving its inflation target, but the outlook is still uncertain.
⑴On April 22, ECB policymaker Peter Kazimir said that the ECB may achieve the 2% inflation target in the next few months, but the uncertainty of the economic outlook is still very high and cannot provide clear guidance for the next policy.
⑵ Kazimir said that inflation is approaching his target and he is confident that he will achieve his target in the xmtraders.coming months.
⑶ The ECB had previously expected inflation to reach 2% in early 2026. Kazimir's remarks indicate that inflation may approach the target faster than previous forecasts in the current environment.
⑷ Kazimir believes that the 2.25% deposit rate of the ECB is already at a neutral level and no longer limits economic growth.
⑸ He warned that due to the risks and the current "turbulent and chaotic" environment, it is difficult to predict the direction of policy.
⑹Kazimir pointed out that global trade tensions, especially U.S. tariff policies, have increased uncertainty and weakened market confidence.
⑺The market still expects the European Central Bank to cut interest rates at least twice this year, with the possibility of a third rate cut of 50%.Deposit rates may drop to 1.50% or 1.75% by the end of 2025.
⑻ Kazimir stressed that decisions will be based on the latest data, the ECB has no preset path, and decisions in June will depend on new data, updated forecasts and risk assessments.
The German government expects the economy to stagnate in 2025, with a growth of 1% in 2026
⑴ On April 22, 2025, the German government lowered its economic expectations for 2025 and is expected to stagnate rather than the previous forecast of 0.3%.
⑵In 2026, the German government expects economic growth rate to be 1%, slightly lower than the January forecast of 1.1%.
⑶ Germany is the only G7 economy that has not achieved growth in the past two years, and the tariffs announced by Trump may put it in a three-year straight situation for the first time.
⑷ The German Ministry of Economic Affairs declined to xmtraders.comment on the new forecast, saying only that it would hold a press conference on Thursday.
⑸ Germany's exports fell by 1.1% in 2024, and are expected to fall by another 2.2% in 2025 and are expected to grow by 1.3% in 2026.
⑹Earlier this month, the German Institute of Economics had lowered its 2025 economic growth forecast to 0.1% from 0.8% in September, considering the impact of U.S. tariffs on steel, aluminum and automobiles.
⑺The German government expects inflation to be 2% in 2025 and 1.9% in 2026, down from 2.2% in 2024.
⑻The weak economy will have an impact on the labor market, with the unemployment rate expected to rise from 6.0% in 2024 to 6.3% in 2025 and to 6.2% in 2026.
The Argentine peso unexpectedly strengthened, and inflation concerns eased
⑴ On April 22, 2025, the Argentine peso strengthened after the lifting of long-term foreign exchange controls, eased the market's concerns about its xmtraders.comeback of inflation.
⑵ Argentina suddenly relaxed foreign exchange controls implemented since 2019 this month, after restricting market access for individuals and businesses and distorting trade and investment.
⑶ After the lifting of the control, the peso depreciated sharply exceeded 10% last week, causing concerns that inflation may accelerate, which had previously slowed down under President Mile's austerity policy.
⑷ However, the government's adherence to fiscal surplus plans, xmtraders.commitment to not interfere with the foreign exchange market, US dollar inflows brought by grain exports, and tight local monetary policy have driven the peso exchange rate to rebound.
⑸ The peso has rebounded to a level close to the level before the lifting of the controls, and the market's concerns about the depreciation of the peso have eased, and the inflation rate has dropped from nearly 300% at the beginning of 2024 to 56%.
⑹While peso futures still suggest that the full-year exchange rate may weaken, the market no longer expects it to have an immediate impact on prices.
⑺Economists say that increased market xmtraders.competition and reduced peso supply will offset inflationary pressures imported due to exchange rate depreciation.
⑻Argentine government needsForeign exchange reserves should be rebuilt under the framework of a US$20 billion loan agreement reached with the International Monetary Fund.
⑼ Analysts expect inflation in April to be between 3% and 5%, higher than recent levels but lower than previous forecasts of more than 5%.
⑽The Argentine government’s tightening monetary policy and fiscal surplus plan are expected to help further reduce inflation in the xmtraders.coming months.
Eurozone Treasury yields outperform U.S. bonds, and market risk aversion sentiment heated up
⑴On April 22, 2025, euro area Treasury yields fell, outperforming U.S. Treasury bonds. Investors turned to European bonds to hedge their independence as Trump criticized the Federal Reserve for causing concerns about its independence.
⑵Trump said that if the Fed does not cut interest rates immediately, U.S. economic growth may slow down, leading to a long-term U.S. bond sell-off.
⑶ German 10-year Treasury yield fell 0.9 basis points to 2.457%, while US 10-year Treasury yield rose to 4.418%.
⑷ The spread of 10-year U.S.-Germany Treasury bonds rose to 195 basis points, and has expanded by 48 basis points in April, the largest monthly increase since June 2003.
⑸In the past month, investors have withdrawn from the United States due to Trump's tariff policies, and European assets have benefited.
⑹Analysts of FASIC pointed out that the rise of the reputation of the European and European Central Banks in the trade dispute has become a safer safe-haven option xmtraders.compared to the United States.
⑺Germany 2-year government bond yield fell to its lowest level since October 2022 by 1.622%, as expectations for a rate cut by the European Central Bank increased.
⑻The ECB cut interest rates by 25 basis points to 2.25% last week, and the market expects its benchmark interest rate in December to be about 1.6%.
⑼ Italy's 10-year government bond yield remained stable at 3.64%.
⑽Investors are paying attention to the initial value of consumer confidence in the euro zone announced on Thursday, and are expected to decline.
3. Trends of major currency pairs in the New York Stock Exchange before the market
Euro/USD: As of 20:22 Beijing time, the euro/USD fell and is now at 1.1464, a drop of 0.43%. Before New York, the euro-dollar price showed a horizontal trading range in day trading, trying to gain positive momentum that could help it recover and rise again to rely on the main bullish trend line of the 60-minute time frame while remaining stable under the support of its EMA50. xmtraders.compared with price action, (RSI) reached an exaggerated oversold level, and there were also positive overlapping signals.
GBP/USD: As of 20:22 Beijing time, GBP/USD fell and is now at 1.3359, a drop of 0.15%. Before the New York Stock Exchange, GBPUSD fell on the last trading day to collect the previous gains and try to gain positive momentum. In addition to the negative signals that appear at this time,By uninstall (RSI) on some obvious overbought conditions.
Spot gold: As of 20:22 Beijing time, spot gold rose, now at 3453.63, an increase of 0.86%. Before New York, gold prices fell on the last trading day, after reaching our target of $3500, collecting its earnings and trying to get positive momentum that could help break through this resistance and trying to get rid of its apparent overbought status on (RSI) with negative signals that appear, in the short term, its trading is accompanied by a sharp rise in the bullish trend line.
Spot silver: As of 20:22 Beijing time, spot silver rose, now at 32.672, an increase of 0.06%. Before New York, silver prices fell on the last trading day due to the stability of the stubborn resistance at $32.90, trying to gain positive momentum that could help break through that resistance under the short-term bullish correction trend, and due to its trading above the EMA50, there is continued positive support in addition to the positive overlapping signals on the (RSI).
Crude oil market: As of 20:22 Beijing time, U.S. oil rose, now at 63.240, an increase of 1.33%. Before the New York Stock Exchange, crude oil prices rose at intraday levels in recent trading, supported by positive signals from short-term bullish correction waves (RSI) and affected by the reverse head and shoulders top pattern, a positive technical pattern.
4. Institutional View
Fitch: Pakistan is expected to allow gradual depreciation of the rupee
Fitch Ratings stated that as the economy accelerates, the central bank of Pakistan will allow gradual depreciation of the rupee to manage current account pressure. Krisjanis Krustins, head of sovereign ratings at Asia Pacific, said the xmtraders.company expects the Pakistani rupee to fall to 285 against the US dollar by the end of June and the rupee to fall further to 295 against the US dollar by the end of the next fiscal year 2026. The country's currency is one of the underperforming currencies in the region, down about 0.7% so far this year, data show.
The above content is all about "[XM Foreign Exchange Market Review]: The ECB is close to achieving inflation targets, and the short-term trend analysis of spot gold, silver, crude oil and foreign exchange on April 22" is carefully xmtraders.compiled and edited by the XM Foreign Exchange editor. I hope it will be helpful to your trading! feelThank you for your support!
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