What Traders need to know today? Friday, November 25, 2022 | Forex Trading - RichDadph

What Traders need to know today?
Friday, November 25, 2022

With US markets closed for the Thanksgiving holiday, talk of whether the ECB will raise rates and the possibility of a recession continue to dwindle. According to the minutes of the ECB's October monetary policy meeting released yesterday, several committee members expressed the view that interest rate hikes should continue due to the prospect of prolonged inflation.

Besides, they stressed the need to tighten the monetary stance to achieve the 2% inflation target. Currently, markets are not taking lightly the prospect of an ECB rate hike of more than 50 basis points at their December meeting.

On the other hand, the ECB's high-interest rate hikes are also raising fears of a recession. The German central bank has identified that the financial system may face risks due to an economic slowdown, and ECB Deputy Governor De Guindos added that the ECB must be cautious of the possible side effects of raising interest rates further in the current environment where inflation is rising.

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