EUR/USD RISES AS FURTHER SIGNS OF COOLING LABOR MARKET WEIGH ON US DOLLAR

avatar
· Views 135



  • EUR/USD holds gains near 1.0780 as Fed rate-cut speculation keeps the US Dollar on edge.
  • Easing US labor market conditions strengthens Fed rate-cut prospects.
  • The ECB is projected to deliver three rate cuts this year due to easing Eurozone inflation.

EUR/USD is struck in a tight range slightly below the crucial resistance of 1.0800 in Friday’s European session after a sharp recovery from 1.0725. The major currency pair holds strength as investors have already discounted the fact that the European Central Bank (ECB) will start lowering its borrowing rates in June.

However, ECB policymakers are divided over extending the rate-cut cycle after the June meeting. A few policymakers believe that additional interest rate cuts from the July meeting could revamp price pressures.

ECB policymaker and Bank of Greece Governor Yannis Stournaras said in an interview with a Greek media outlet last week that he sees three rate cuts this year. He sees a rate cut in July as possible and added that an economic rebound in the first quarter made a three-cuts scenario more likely than four. The Eurozone economy expanded by 0.3% in the January-March period, beating expectations of a 0.1% growth.

On the contrary, ECB Governing Council member and Governor of Austria's central bank, Robert Holzmann, said on Wednesday that he doesn't see a reason to cut key interest rates "too quickly or too strongly," Reuters reported.

This week, EUR/USD has been driven by market sentiment due to the absence of tier-1 Eurozone and United States economic data. However, next week, investors will focus on the US Consumer Price Index (CPI) data for April, which will be published on Wednesday.


免責事項:本記事で述べられている見解は著者の見解のみであり、Followmeの公式見解を反映するものではありません。Followmeは、提供された情報の正確性、完全性、信頼性について一切責任を負いません。また、書面で明示的に記載されている場合を除き、本記事の内容に基づいて行われたいかなる行動についても責任を負いません。

この記事が気に入ったら、著者にチップを送って感謝の気持ちを表しましょう。
応答 0

  • tradingContest