EUR/USD corrects from 1.0860 as yields rebound, ECB sees interest rate peak by Summer – Crypto News – Crypto News
Connect with us
EUR/USD builds a cushion around 0.9940, downside looks likely ahead of German/US PMIs EUR/USD builds a cushion around 0.9940, downside looks likely ahead of German/US PMIs

others

EUR/USD corrects from 1.0860 as yields rebound, ECB sees interest rate peak by Summer – Crypto News

Published

3 years ago

on

  • EUR/USD has slipped marginally to near 1.0860 as the strength of the risk-on mood has eased.
  • Fed bostic has favored a 25 bps rate hike culture amid slowing US inflation.
  • The ECB is expected to reach the terminal rate by the Summer.

The EUR/USD The pair has sensed marginal selling pressure after failing to overcome the immediate resistance of 1.0860 in the Tokyo session. The major currency pair is demonstrating signs of a loss in the upside momentum amid a recovery in the alpha generated by the US Treasury. bonds, The 10-year US Treasury yield has rebounded to near 3.46%.

An interim rebound in the risk-aversion theme is impacting the S&P 500 futures. The US equities are facing pressure after three-day consecutive bullish sessions, portraying a short-term caution amid an overall upbeat market mood. The US Dollar Index (DXY) is hovering below 102.00, displaying a lackluster profile.

After a meaningful downtrend in the United States inflation, it would be worthy to claim that the Federal Reserve (Fed) is in a comfortable position now and might look to scale down the extent of the interest rate hike ahead. Thursday’s release of lower inflation print has already changed the viewpoint of Fed policymakers.

Atlanta fed Bank President Raphael Bostic who said on Monday that it is “fair to say that the Fed is willing to overshoot,” is now saying that he would be comfortable moving with a 25 basis points (bps) interest rate hike culture. He further added that data showing inflation slowed in December “was really welcome news” that may allow the US Fed to scale back to quarter-point rate increases at its upcoming meeting.

on the euro zone front, the spree of the interest rate hike by the European Central Bank (ECB) is expected to conclude by the summer. After ECB governing council member Mario Centeno, another ECB member, and French central bank governor Francois Villeroy de Galhau cited, the central bank should aim to reach the terminal rate by the summer. He further added that the ECB needs to be pragmatic about the pace of rate hikes.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending