Amid trade uncertainty, the ECB has little impact on bonds and the euro

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On April 17, the European Central Bank cut interest rates by 25 basis points on Thursday, but it has little impact on European government bonds and the euro at the moment, Kyle Chapman, an analyst at Ballinger Group, said in a note. Yields, he said, are subject to President Trump's changing trade policies. The euro also left interest rate differentials after Trump began issuing trade threats. Even if interest rate differentials become the dominant factor again, it will be difficult for the ECB to say anything that will change the market's view of the growth outlook.

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