GER30 Posted its Worst Week in 3 Months, Brought Down by a Hawkish ECB
GER30 Analysis
In line with other major central banks, the ECB slowed down the pace of tightening on Thursday, with a 50 basis points rate increase, climbing down from two straight 0.75% moves. However, President Lagarde offered very aggressive commentary and out-hawked Chair Powell and the Fed.
She said that the bank is looking to raise interest rates "at a 50-basis-point pace for a period of time", in order to restore price stability, which suggests potentially more than one such moves. This stance is pursued in spite of the projection of a recession at the turn of the year and the lowering of the 2023 GDP forecast to a weak 0.5%. [1]
The hawkish guidance and the grim economic projections were detrimental to GER30, which posted its worst week since mid-September. This makes it vulnerable to the 38.2% Fibonacci of the October low/December high advance (13,577), although a steeper decline towards 13,011-12,896 does not look easy yet.
One the other hand, GER30 finds support today and may find the opportunity to rebound above 14,335. However, a significant improvement in sentiment will be required for fresh multi-month highs towards 14,960 and beyond.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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| Retrieved 18 Apr 2026 https://www.ecb.europa.eu/press/pressconf/2022/html/ecb.is221215~197ac630ae.en.html |
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