EUR/USD takes another step lower after Tuesday’s US inflation report.
The short-term uptrend is now in doubt but the move down lacks momentum.
Analysts at TD Securities are still penciling in June for a Fed rate cut.
EUR/USD continues its steady decline into midweek after the release of higher-than-expected inflation data from the United States (US) reduced the chances of an early interest-rate cut from the Federal Reserve (Fed).
The pair is trading in the 1.0920s at the time of publication, down from the last major peak in the 1.0980s on Friday.
Investors have now shifted their expectations away from the possibility of the Fed pressing the button on cutting interest rates in May, more firmly to June.
Since keeping interest rates higher for longer is positive for the US Dollar (USD), as it attracts greater capital inflows, the US Consumer Price Index (CPI) data release has seen the Greenback gain in most pairs, including EUR/USD.
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.