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eurozone
Trends
- 1
The digital euro has made its first appearance in wholesale financial markets, marking a step in the European Central Bank's push toward a central bank digital currency. The debut signals that the eurozone is moving beyond research stages and testing how a digital version of the currency could function for institutional financial transactions. Details on scale and participants remain limited, but the development is being closely watched as Europe weighs a broader rollout.
- 2Busy Week Ahead: Jobs Report, Global Inflation Data, RBA Meeting▼Week Ahead: U.S. Jobs Report; U.S., Eurozone, Australia, SK and Tokyo Inflation Reports; RBA Meeting; Central Bank Speeches from the Fed, ECB, and BOE
Markets are gearing up for a packed economic calendar in the coming week. The U.S. jobs report heads the agenda, alongside inflation data from the United States, the Eurozone, Australia, South Korea and Tokyo. The Reserve Bank of Australia meets to set policy, and investors will also watch speeches from Federal Reserve, European Central Bank and Bank of England officials for clues on the direction of interest rates.
- 3
Bank lending to eurozone businesses fell sharply in August, dropping to roughly half its previous level, according to the Wall Street Journal. The steep slowdown in credit to companies points to tightening financial conditions in the euro area and will add to concerns about weakening business investment and economic growth across the currency bloc.
- 4Are investors expecting too many ECB rate hikes?▼Are investors expecting too many hikes from the ECB?
Debate has emerged over whether markets are pricing in too many interest rate increases from the European Central Bank. Commentators are questioning if investor expectations for the pace and extent of ECB tightening are ahead of what the bank will actually deliver, a question with direct implications for the euro, bond yields and borrowing costs across the eurozone.
- 5Four scenarios mapped for ECB life after Christine Lagarde▼Four scenarios sketch ECB succession plan for post-Christine Lagarde era
Attention is turning to who might succeed Christine Lagarde as president of the European Central Bank. Four possible scenarios are being sketched for the post-Lagarde era, laying out potential candidates and pathways for the eurozone's top monetary policy job as her term eventually winds down.
- 6
The European Central Bank has rejected proposals to relax reserve requirements for euro-denominated stablecoins, according to news reports. The decision means issuers of euro stablecoins must continue holding conservative, high-quality reserves, despite pressure from parts of the crypto industry for lighter rules. The move underscores the ECB's cautious stance on digital assets and its concern that loosely backed stablecoins could pose risks to financial stability in the eurozone.