EURUSD slipped further into the low end on Friday, clipping into 1.0670 before recovering to the 1.0700 handle during the US market session. Political pressure is weighing down the Euro after a wide shift in European voter sentiment tilted towards right-of-centre political parties in European parliamentary elections recently, sparking a snap election in France. On … Read more
The Federal Reserve will most certainly hold US interest rates steady at the current 23-year high and investors need to review their portfolios amid a divergence in global monetary policy, a leading financial advisor said Wednesday. “With the annual CPI increase at 3.3%, markets might be hopeful for potentially more rate cuts, but there remains … Read more
Following Wednesday’s choppy action in foreign exchange markets, investors are gearing up for key events that could ramp up the volatility. The European Central Bank will announce monetary policy decisions on Thursday and the US economic calendar will feature weekly Initial Jobless Claims and Unit Labor Costs data for the first quarter ahead of Friday’s … Read more
Gold traders and investors expected the European Central Bank to cut interest rates by 25 basis points for the first time since 2019 in its meeting on Thursday, making it the first reversal in the bank’s hawkish monetary policy in five years. The Euro and the equities markets in Europe had already priced a major chunk of … Read more
The euro is experiencing a third successive decline against the pound sterling, with the EURGBP pair rising sharply at 0.8531, notching a 0.26% gain. Eurozone inflation data, both headline and core HICP, exceeded forecasts, potentially impacting the timing of the ECB’s easing cycle. Spain’s HICP data came in higher than expected at 3.8% YoY, while Germany’s HICP harmonised inflation rate increased to 2.8% YoY. The EU’s block figures also rose, indicating unexpected inflation pressures that may lead the ECB to reconsider its dovish stance.
Higher-for-longer interest rates are likely to remain central banks’ main strategy for the rest of the year, according to the CEO of a leading financial advisory and fintech firm.
The EURUSD pair fell to 1.0830 in European trading after failing to reach a two-month high near 1.0900. ECB governing council member Klaas Knot suggested a gradual rate-cut approach based on recent data showing wage growth and improved Manufacturing PMI. The Dollar’s DXY Index recovered to 104.80 due to market sentiment. Investors are now expecting the Fed to start reducing interest rates in the last quarter of the year.
The EURUSD pair is trading around 1.0850 in a tight range. ECB policymakers are hesitant to commit to further rate cuts beyond June due to concerns about reviving price pressures. Traders have lowered expectations of three rate cuts to two this year. Higher wage growth is leading to increased consumer spending and inflationary pressures. Germany’s Ifo Business Climate data for May missed estimates, with the Business Climate Index, Current Economic Assessment Index, and Expectations Index all falling short of expectations.
EURUSD is trading near 1.0850 in a tight range as the US Dollar stabilizes ahead of the FOMC Minutes and preliminary S&P Global PMI data. ECB policymakers are considering extending the rate-cut cycle, while Fed officials are emphasizing the need to maintain a restrictive policy framework. US inflation declined in April, and policymakers want to see more good inflation data before making any changes to monetary policy. Fed Vice Chair Barr and Atlanta Fed President Bostic both expressed the need for more time to be certain that inflation will reach the 2% target.
The EURUSD pair is holding near 1.0900 in European trading due to investors’ higher risk appetite. The European Central Bank is expected to start reducing interest rates from the June meeting, but policymakers are divided over a rate-cut move in July. The focus will shift to the Eurozone and U.S. preliminary Purchasing Managers Index data for May. Fed policymakers are expected to maintain a hawkish stance on interest rates despite a decline in price pressures. New York Fed Bank President John Williams believes the monetary policy is in a good place and sees no need for changes at the moment.