EURUSD is continuing to fall, trading lower at 1.0580.
EURUSD is continuing to fall, trading lower at 1.0580. During the early trading hours of the Asian day on Tuesday.
Despite European Central Bank (ECB) President Christine Lagarde’s remark. To the European Parliament that rates will stay restrictive. The pair closed at its lowest level since March. for as long as it takes.
Rates will stay restrictive for as long as required, according to ECB President Christine Lagarde.
Lagarde, on the other hand, has stated that inflation is projected to be “too high for too long.” However, the ECB confronts a difficult dilemma in that it must carefully balance tackling. Inflationary pressures while not damaging the Eurozone’s uneven internal economy.
The US Dollar Index (DXY) is trading at 106.00 at the time of writing. Down from its high of November.
Cautious market attitude and increasing US Treasury rates are supporting the US Dollar’s (USD) potential.
The US Dollar (USD) remains strong. Thanks in part to cautious market mood and increased US Treasury rates.
The yield on the 10-year US Treasury note rose to 4.55%. A level not seen since October 2007. The belief that high interest rates would remain for a lengthy period is anchored in the resiliency of the US economy. According to Reuters, US President Joe Biden and one of his top aides have warned about the possible implications of a federal government shutdown. They voiced fear that a government shutdown would cause significant problems. Including the loss of food stamps for roughly 7 million low-income women and children.
According to the statement, President Joe Biden and House Speaker Kevin McCarthy already agreed on federal spending levels. The Republican-controlled House of Representatives, on the other hand, may try to enact big budget cuts this week.
The Democratic-controlled Senate, which is anticipated to oppose the cutbacks. Would have to approve them. If both chambers are unable to achieve an agreement on federal expenditures, a partial government shutdown may occur. The government would be shut down by the following Sunday.
EURUSD investors are looking for inflationary pressures in both economies in the next economic data releases.
EURUSD investors are looking forward to Friday’s publication of the US Federal Reserve’s (Fed) preferred inflation indicator, the Core Personal Consumption Expenditures (PCE) Price Index, and the Eurozone’s Core Harmonized Index of Consumer Prices (HICP).
These metrics may give critical insights into inflationary pressures in both economies and may influence EURUSD trading decisions.
