Euro Falls On ECB Rate Cut Bets
12 Abril 2024 - 9:31AM
RTTF2
The euro was lower against its most major counterparts in the
New York session on Friday, as the likelihood of a reduction in key
interest rates in June increased after monetary policy announcement
from the European Central Bank on Thursday.
The ECB signalled a possible rate cut in June if its next set of
projections increased the confidence that inflation is moving
towards the target.
At her press conference, ECB President Lagarde said that some
members supported a rate cut in April.
An ECB poll of professional forecasters showed that inflation in
the euro zone will fall to 2 percent in 2025 and stay there in the
longer term, giving the clearest indication that the central bank
could cut interest rates in June.
ECB Governing Council member Yannis Stournaras said that the
central bank must start cutting rates soon and advocated up to four
moves by the end of the year.
German consumer price inflation slowed to 2.2 percent in March
from 2.5 percent in February, final data from Destatis revealed.
That was in line with the flash data published earlier.
The latest inflation was the weakest since May 2021, when prices
had risen the same 2.2 percent.
The euro declined to more than a 5-month low of 1.0622 against
the greenback and a fresh 3-week low of 0.9677 against the franc,
off its early highs of 1.0729 and 0.9763, respectively. The euro is
seen finding support around 1.05 against the greenback and 0.95
against the franc.
The euro dropped to more than a 3-week low of 162.27 against the
yen and a 9-day low of 1.4617 against the loonie, from its early
highs of 164.41 and 1.4685, respectively. The euro may face support
around 161.00 against the yen and 1.44 against the loonie.
In contrast, the euro rose to 1.6448 against the aussie and
1.7910 against the kiwi, from an early 2-day low of 1.6376 and a
multi-week low of 1.7843, respectively. The euro is poised to
challenge resistance around 1.67 against the aussie and 1.82
against the kiwi.
The euro edged up to 0.8551 against the pound, from an early
multi-week low of 0.8528. If the currency rises further, it may
find resistance around the 0.88 level.
Euro vs CHF (FX:EURCHF)
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Euro vs CHF (FX:EURCHF)
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De Set 2023 até Set 2024