Sign Up Log in

    Eurozone three-month M3 money supply growth rose to 3% from 2.9%

    by VT Markets
    /
    Feb 26, 2026
    Eurozone M3 money supply growth over the three months to January rose to 3.0%. It was 2.9% in the previous period. This update shows a 0.1 percentage point rise from the prior month. The figures refer to the three-month rate of change in M3.

    Eurozone M3 Growth Ticks Higher

    Eurozone M3 money supply growth edged up to 3.0% in January. This small rise suggests liquidity is not tightening as fast as some expected. On its own, this reduces near-term pressure on the European Central Bank (ECB) to cut interest rates. This also fits with other recent data. Euro area inflation in January was 2.5%, slightly above the consensus forecast. Late in 2025, markets were pricing several rate cuts for this year, but that view is now being challenged. We expect the ECB to stay cautious and hold rates steady for longer than previously thought. For traders, this means revisiting short-term interest rate futures, including Euribor-based contracts, as pricing may need to shift toward a more hawkish ECB outlook. If rates stay higher than expected, the Euro could strengthen. We are therefore looking at call options on EUR/USD, expecting the pair to hold firmer in the coming weeks. On the other hand, a “higher for longer” rate backdrop could weigh on European equities. Higher borrowing costs can reduce corporate profits and limit investors’ appetite for risk. As a result, we are considering protective put options on indices such as the EURO STOXX 50 to hedge against potential downside.

    Implications For Rates Currencies And Equities

    Create your live VT Markets account and start trading now.

    here to set up a live account on VT Markets now

    In This Article

    see more

    Back To Top
    server
    Click Click Click Click Click
    Follow us on

    Hello there 👋

    How can I help you?

    Chat with our team instantly

    Live Chat

    Start a live conversation through...

    • Telegram
      hold On hold
    • Coming Soon...

    Hello there 👋

    How can I help you?

    telegram

    Scan the QR code with your smartphone to start a chat with us, or click here.

    Don’t have the Telegram App or Desktop installed? Use Web Telegram instead.

    QR code