ECB's Nagel Says Global Economy Remains on Growth Trajectory Despite Middle East Tensions
Key Takeaways
- •Nagel said the global economy is still expanding even with tensions in the Middle East.
- •He said easing core inflation and services inflation is encouraging and that he is not seeing second-round effects.
- •Nagel welcomed coordinated intervention in the yen and expects consultations on possible future intervention measures.
- •USD/JPY remains above its 100-day moving average at 160.01.
- •ECB's Simkus said a September rate hike would not be sufficient.
ECB's Nagel Says Global Economy Remains on Growth Trajectory Despite Middle East Tensions
EUR
Speaking at the G20 summit, ECB's Nagel said that despite tensions in the Middle East, the global economy remains on a growth trajectory.
He added that easing in core inflation and services is good news and that he is not seeing second-round effects, a point that matters for the ECB because officials have been watching for signs that earlier price pressures might broaden beyond the initial shock.
Nagel also welcomed coordinated intervention in the JPY and said he expects consultations on future intervention measures, keeping attention on how policymakers may respond when currencies move sharply.
The USD/JPY remains above its 100-day moving average at 160.01.
For EUR/JPY, the pair has been trading above and below its 100-hour and 200-hour moving averages near 185.57 and 185.63. The converged moving averages are setting up for the next push. On the downside, the 100-day moving average is at 185.099. Below that, the 100-hour and 200-hour moving averages on the 4-hour chart are near 184.85 and 184.76, followed by the 200-day moving average at 184.266. On the upside, resistance is seen between 185.93 and 185.03.
Meanwhile, ECB's Simkus also said that a September hike is not going to be enough, underscoring that the policy debate within the ECB remains active even as inflation readings and external risks stay in focus.
Must Read
What is tradeCompass at investingLive.com: Trading methodology explained and how traders can utilize it
USD/JPY continues to test the waters at the 160 mark
Stock Movers to Watch Today: PCG and EIX Plunge as RBLX, CRWD, TSLA and SLB Rally. Notable earnings reporters later today.
What are the main events for today?
ETHUSD Analysis Today: ETH Bulls Lead Above $2,477.70
Oil Shock Pushes Yields Higher as Bitcoin Resists and Gold Weakens
UBS says 3 reasons the Venezuela oil deal wont move prices much, Hormuz still key
China private PMI beats forecast, longest upturn in five years. AUD support.
Euro area inflation climbs above 3% in August on higher energy prices
Bitcoin at crossroads after hawkish Warsh: traders waiting for 77K-80K range break
S&P 500 analysis (with video) shows bears are back but where is the next bounce?
Why Bond Yields Are Rising: A Guide for Investors
Best in 2026
Sponsored
