The ECB surprised the markets. Time for the Fed!

European Central Bank surprised the market with last week's interest rate hike by 50 bp, but economists have no doubts - this move was entirely justified by high inflation in the euro zone. The resignation from forward guidance and the introduction by the ECB of a new program of effective policy transmission, i.e. the TPI purchase program, may introduce an element of uncertainty in the forecasts of future actions of the central bank.

The market expects further hikes

The current weakness of the European economy makes market participants expect a continuation of monetary policy tightening in the euro area. This week, everyone's focus will be on the decision Federal Reservewhich will be set next Wednesday. Although there were allegations that in reaction to weaker macroeconomic data the Fed may raise interest rates by as much as 100 bp. however, the market consensus remains at the current level of 75 bp. Investors are also waiting for the next quarterly reports from Wall Street. This week we will know the results of companies such as Apple Lossless Audio CODEC (ALAC),, Microsoft or Googlewhich may become an additional fuel for the rise of US indices, or constitute a strong stimulus for sell-offs.

We invite you to a webinar with the Chief Economist XTB Przemysław Kwiecień, PhD, in which he will discuss the current economic situation in Europe and forecast what the Fed will do this week.

• The weakness of the European economy
• What will the Fed do?
• First conclusions from the season of results

WATCH ON-LINE

In addition, due to the very dynamic situation in the world, additional ones will be made available raports Video on the impact of the coronavirus on the global economy, market analysis precious metals.

About the host

Dr Przemysław Kwiecień - Chief economist X-Trade Brokers. Doctor of Economics at the University of Warsaw, graduate of the University of Warsaw and London Metropolitan University (MSc). Holder of the prestigious CFA certificate. He has been working for XTB since 2007, previously he gained experience as an advisor to the Minister of Finance, Mirosław Gronicki, and an economist at Bank Millennium. At XTB, he manages the Analysis Department.

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