COMMENT-Will ECB hold or cut in April? Trump may tip euro scales
March 7 (Reuters) - To cut or not to cut interest rates again in April? That is the question for the European Central Bank, with events across the Atlantic set to influence its answer.
Germany's fiscal "bazooka" means there is a strong case for an ECB rate hold next month after the central bank said "monetary policy is becoming meaningfully less restrictive" as it reduced rates for the sixth time since June on Thursday.
However, there could be an equally strong case for the ECB to cut rates on April 17 if U.S. President Donald Trump imposes 25% tariffs on goods imports from the European Union before then.
Trump has issued regular tariff threats against the EU since his second term began, and may feel the time to act is nigh.
EUR/USD rose to a four-month high circa 1.0850 on Thursday, courtesy of the ECB's relatively hawkish rate guidance. Forty-eight hours earlier, EUR/USD was sub-1.06 - before the euro soared on news of Germany's tectonic spending shift.
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