EUR/USD declines as the US Dollar improves on market caution ahead of US Inflation.
The Euro receives a challenge from expectations of an ECB interest rate cut at the start of the second quarter.
US CPI is expected to moderate at the reading of 2.9% YoY, down from 3.4% prior.
The EUR/USD pair continues its downtrend for the second consecutive day as the US Dollar (USD) gains strength, as traders exercise caution ahead of the release of inflation data from the United States (US) scheduled for Tuesday. Additionally, Economic Sentiment data from the Eurozone and Germany has been released, and given the EUR/USD pair a small boost in the immediate reaction to the data.
The Euro faces resistance as speculation mounts regarding potential interest rate cuts by the European Central Bank (ECB) at the start of the second quarter. Comments from ECB Executive Board member Piero Cipollone indicated that there may not be a need for the ECB to further restrict demand in its efforts to address inflation, suggesting that interest rates might not need to be raised further.
The US Dollar Index (DXY), tracking the USD against a basket of six major currencies, maintains its upward trajectory for the second successive session. Expectations of inflationary pressures in the United States are driving speculation that the Federal Reserve (Fed) will refrain from cutting interest rates at the upcoming March meeting. This sentiment is bolstering the attractiveness of the US Dollar relative to the Euro
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.