Looking Ahead: Commodity Prices and ECB Rate Decision

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Recently, there has been a significant shift in the consensus among traders regarding the European Central Bank (ECB) and its future easing measures. Previously, it was believed that the ECB would hold off on further rate cuts until December. However, weak economic activity data in key European countries has led many traders to now anticipate a third rate cut as early as this week.

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Exclusive data from GSC Commodity Intelligence suggests that the Eurozone’s unemployment rate is projected to rise in the coming quarters, potentially supporting a case for continued rate cuts by the ECB. This could set the stage for a series of rate cuts until the deposit rate reaches 2%.

Global Monetary Policy Easing Unleashes Commodities Rally

Meanwhile, all eyes are on the UK inflation data, as it could influence the Bank of England’s decision to speed up rate cuts to align with other major central banks. With a new era of global monetary policy easing underway, the stage is set for Commodities to potentially reach new all-time highs in the coming months.

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