EURUSD falls to around 1.0770 as ECB Policymakers hint at a possible rate cut.
EURUSD remained around 1.0770 during the European session on Friday, Continuing losses for the fourth day in a row. However, trading volumes are minimal since market Participants are Anticipated to observe Good Friday. The euro is under pressure as European Central Bank (ECB) policymakers increasingly hint. That interest rates will be reduced in June.
German retail sales fell 1.9% month on month and 2.7% year on year in February.
Furthermore, the EURUSD was under pressure following weaker than expected Retail Sales data from Germany. According to the study, German retail sales fell 1.9% in February. Contrary to predictions of a 0.3% increase after a 0.4% decrease the previous month. In addition, year-over-year retail sales declined by 2.7%, above the expected decline of 0.8% and the preceding decrease of 1.4%.
Yannis Stoumaras remarked on Tuesday that there is growing support within the ECB for a rate cut in June. Core inflation has fallen sharply. According to ECB policymaker Francois Villeroy, but it remains high. He stated that meeting the ECB’s 2% inflation target is doable. But cautioned against increasing downside risks if the ECB does not decrease rates. Furthermore, ECB executive board member Fabio Panetta stressed. That tight policies are depressing demand and causing Inflation is rapidly declining.
Investors are waiting for the US PCE numbers to have a better understanding of the Fed’s interest rate trajectory.
EURUSD remained around 1.0770 during the European session on Friday. The US Dollar Index (DXY) gains, approaching 104.60. As recent data show annualized economic growth in the United States (US). Fueled by consumer spending. In the fourth quarter of 2023, US Gross Domestic Product (GDP) increased by 3.4% on an annualized basis, exceeding market projections of 3.2% growth. US Core Personal Consumption Expenditures (QoQ) for the same period came in at 2.0%, somewhat lower than the expected and previous reading of 2.1%.
A Federal Reserve (Fed) official’s aggressive views bolstered the greenback. Given the robust inflation statistics, Fed Governor Christopher Waller warned on Wednesday that interest rate decreases could be delayed. Investors are now expecting the US Personal Consumption Expenditures (PCE) report on Friday, which acts as the To acquire more information and direction, consider the Fed’s favored inflation gauge.
