Dollar retreats on intervention fears; ECB 'crystal clear' over possible June cut
Investing.com - The U.S. dollar edged lower in early European trade Wednesday, retreating from recent highs as traders contemplated the possibility of coordinated official intervention, but underlying tone remains positive.
However, the dollar’s dramatic gains have prompted sharp losses in other currencies, particularly in Asia. That said, these gains may be only temporary with the European Central Bank now expected to cut interest rates before the Federal Reserve in an attempt to give the region’s struggling economies a boost.
“We can see those expectations shifting over the coming months as more BoE easing is priced. This will be negative for sterling.”traded largely flat at 154.38, after testing 34-year highs considerably above 154. Weakness in the yen also saw markets remain cautious over government intervention.
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