ECB cuts rates as expected but might be calling a time out/Challenger data/Claims too

While the ECB cut rates again to 2.50%, bringing its REAL rate to about zero in the face of what could be the biggest fiscal expansion in Europe seen in a while, they are hinting at a pause by saying that the rate level now is “becoming meaningfully less restrictive.” On that comment, the euro initially rallied but gave it back as seen below, though still up on the day. We’ll soon hear what Lagarde has to say at her press conference.

Euro Intraday

The Challenger February jobs report saw the number of cuts totaling 172,017 which is the most for the month of February since 2009 and the most over a 12 month period since July 2020. They said “Private companies announced plans to shed thousands of jobs last month, particularly in Retail and Technology. With the impact of the DOGE actions, as well as canceled government contracts, fear of trade wars, and bankruptcies, job cuts soared in February.”

In that headline figure, about 62k came from the federal government “from 17 different agencies.”