Euro Area ECB General Council Meeting

Info

History

Chart

Impact:

Medium

Next Release:

Forecast:

Period: Mar 2016

What Does It Measure?

The Euro Area ECB General Council Meeting measures the discussions and decisions made by the European Central Bank's (ECB) governing body, focusing on monetary policy, interest rates, and economic stability across the Eurozone. It assesses key areas such as inflation trends, economic growth, and overall financial conditions, serving as a crucial indicator of the ECB's policy direction and economic outlook.

Frequency

The ECB General Council Meeting occurs bi-monthly, with key reports and decisions typically released on the first Thursday of the month following the meetings, providing updated insights into monetary policy stances.

Why Do Traders Care?

Traders closely monitor the outcomes of the ECB General Council Meeting as it significantly influences the euro currency, bonds, and equity markets within the Eurozone. Traders react to the meeting's tone regarding potential future interest rate changes, as dovish signals may support equities while hawkish signals tend to strengthen the euro against other currencies.

What Is It Derived From?

The outcomes of the ECB General Council Meeting are derived from extensive discussions among the central bank's governing council, which includes national central bank governors, and other essential economic data inputs such as inflation rates, growth projections, and employment statistics. The meeting draws upon both qualitative assessments and quantitative data to inform policy decisions.

Description

The ECB General Council Meeting produces a preliminary assessment of economic conditions that can lead to changes in monetary policy, followed later by a final version of any adjustments made. The preliminary report often captures immediate market sentiment, while the final report provides a more refined understanding of the ECB's long-term strategy and policy announcements.

Additional Notes

The decisions made during the ECB General Council Meeting serve as a coincident economic indicator, reflecting current economic conditions rather than predicting future trends. This meeting often relates to other economic reports, such as inflation and unemployment data, providing broader context to the Eurozone's economic health.

Bullish or Bearish for Currency and Stocks

If the ECB signals a hawkish tone suggesting potential rate hikes, this would be classified as bullish for the euro and could result in bearish conditions for stocks due to increased borrowing costs. Conversely, a dovish tone from the meeting indicating a continuation of low rates would generally be seen as bearish for the euro but bullish for stocks, as it signals continued economic support.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Time	Actual	Forecast	Previous	Surprise