EURUSD could experience volatility on Thursday, with US data and ECB speakers on the agenda.
EURUSD remains in the mid-1.0900s, having fallen from a high of 1.0981 last week. With data releases and events hitting both sides of the EURUSD pair on Thursday. A quick look at the proverbial “crystal ball” indicates that volatility is likely.
US factory gate pricing and retail sales could influence the argument over when the Fed will decrease interest rates.
In the United States, factory gate inflation. And retail sales statistics may tone expectations of when the Federal Reserve (Fed) would start Interest rate cuts are a fundamental driver of the US dollar.
In Europe, ECB speakers may provide insight into when the ECB will contemplate cutting interest rates.
Meanwhile, in Europe, a number of European Central Bank (ECB) rate setters are slated to speak. With their comments likely to give light on when the central bank may decide to begin decreasing interest rates a crucial driver for the Euro.
The upshot is that if inflation is viewed as persistent. Interest rates will remain high, supporting the currency in question.
EURUSD Daily Market movers:
US core factory gate prices, Producer Prices ex Food and Energy (Core PPI). An essential inflation statistic, are set to be released at 12:30 GMT. Economists predict a decline to 1.9% YoY in February from 2.0% in January.
On a On a monthly basis, Core PPI is expected to grow 0.2%, compared to the 0.5% increase witnessed the previous month.
The headline Producer Price Index (PPI) is expected to rise 1.1% year on year vs 0.9% in January. With a 0.3% increase month on month, as previously reported.
Because the PPI informs the base costs that feed into the Consumer Price Index (CPI). It is a key leading indicator of CPI inflation. If retailers have to pay extra for their items wholesale. They normally pass the cost on to customers.
US Retail Sales, which are also due at 12:30 GMT, are expected to improve in February, rising 0.8% from a 0.8% decrease in January. Higher than-expected sales tend to boost inflation, with consequences for interest rates. Policy and the US dollar.
ECB speakers may provide insight into when the ECB will contemplate cutting interest rates.
ECB speakers will discuss whether interest rates will fall in April or June.
Francois Villeroy de Galhau, a key member of the ECB’s Governing Council (GC), said on Monday that he was leaning toward the Frankfurt-based bank’s first interest rate decrease in April.
On Wednesday, Bank of Austria Governor and ECB Governing Council member Robert Holzmann said he believed the bank will reduce in June. Christine Lagarde, President of the ECB, also stated that the ECB’s interest rate policy would be reviewed in June.
Yannis Stournaras, a member of the ECB Governing Council, supported an early rate cut on Thursday. Stournaras stated that he doesn’t believe the idea that the ECB cannot Cut rates before the Fed, and four rate cuts by 2024 appear doable.
A list of ECB speakers on Thursday may offer additional information on the debate:
Isabel Schnabel, a member of the European Central Bank’s Executive Board, will speak at 11:00 GMT.
According to Forexlive.com, Klaas Knot, a member of the ECB Governing Council, will hold a press conference at 12:00.
According to Forexlive.com, Pablo Hernandez de Cos, Governor of the Bank of Spain and ECB Governing Council member, will speak at an event in Madrid at 17:00.
Luis de Guindos, Vice-President of the European Central Bank, will speak at 18:00 GMT.
If more members look to drift toward June, as is the most likely scenario, the Euro and EURUSD may benefit marginally. If De Galhau As the camp gathers momentum, the EURUSD may weaken.
