EUR/USD has resumed its short-term downtrend, perhaps due to diverging commentary from central bankers.
European rate-setters are converging on June as the possible moment for a cut in interest rates as inflation slows.
Their counterparts in the US are advocating caution in respect to lower interest rates.
EUR/USD edges lower, trading in the lower 1.0800s on Wednesday, shrugging off just-released Spanish inflation data for March which met economists’ estimates of 3.2% for the headline plot.
The pair’s tick lower follows through on the previous day’s bearish reversal from the mid 1.0800s and likely reflects the diverging commentary from rate-setters at the US Federal Reserve (Fed) and European Central Bank (ECB).
Commentary from ECB officials is now indicating a high likelihood it will cut interest rates in June, whilst a delay from the Fed is still possible. This is causing weakness for the Euro and depressing EUR/USD, since lower interest rates tends to reduce foreign capital inflows.
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.