EUR/USD stays defensive around 1.0900 despite hawkish ECB, US inflation, Fed Minutes eyed – by anilpanchal7 EURUSD ECB Fed Inflation RiskAppetite
US employment data renew hawkish Fed bets but mixed details check Euro bulls.US-China tension, US inflation and FOMC minutes will be crucial for clear directions, Easter Monday holiday to limit intraday moves.seesaws around 1.0900 during a sluggish start to the key week amid Easter Holiday. Apart from the holidays, recently mixed concerns about the Federal Reserve’s next move, as well as the European Central Bank’s rate hike concerns also weigh on the Euro pair.
Hawkish bets on the Fed’s 0.25% rate hike increased after upbeat US employment data for March. However, the market participants also expect a rate cut in late 2023 and hence pour cold water on the face of the Fed hawks, which in turn please the EUR/USD bulls. That said, the US Bureau of Labor Statistics revealed that Nonfarm Payrolls rose by 236K in March, the lowest since January 2021 , versus 240K expected and 326K prior. Further, the Unemployment Rate eased to 3.5% versus 3.6% prior while the Labor Force Participation Rate improved to 62.6% from 62.5%. Finally, annual wage inflation, per the Average Hourly Earnings, dropped to 4.2% from 4.6%, versus market forecasts of 4.3%.
The downbeat US data also propels fears of a recession in the world’s largest economy and weigh on the US Dollar, as well as fuels the EUR/USD price. As per the latest research, the Federal Reserve’s preferred gauge of economic health backed the recession woes, via bond market clues.
On a different page, China’s military drills near Taiwan Strait escalates US-China tension and allow the US Dollar sellers to take a breather after the US Dollar Index posted a three-week downtrend.and upbeat US data, as well as geopolitical woes, can pause the US Dollar weakness, the EUR/USD bears are far from the table and needs more clues to extend the upward trajectory amid the Easter Monday holidays.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ECB Board Member Warns EU's New Crypto Rules Not Sufficient – Regulation Bitcoin NewsThe crypto rules in the Markets in Crypto-Assets (MiCA) bill will not be sufficient on their own, says the ECB board member. cryptocurrency cryptoassets
Read more »
Mike Pence is open to reforming Fed dual mandate to focus on inflationWith inflation persisting at three times what the Federal Reserve considers acceptable, former Vice President Mike Pence expressed interest in reforming the central bank's dual mandate of balancing price stability with full employment during an exclusive interview with the Washington Examiner.
Read more »
Former Fed Ex cargo jet makes one last trip, cruising the Glenn Highway to Big LakeA Boeing 727 cargo jet embarked on a final journey this week. It was carefully hauled from Anchorage down the asphalt of the Glenn Highway to Big Lake, where a man has plans to convert the aircraft into housing.
Read more »
Bank deposits edge up after record outflows, Fed data showsDeposits at U.S. commercial banks rose near the end of March for the first time in about a month, showing signs of stabilizing after the two largest bank failures since the financial crisis rocked the banking system and rattled depositors.
Read more »
OPEC's surprise production cut complicates the Fed's fight against inflation | CNN BusinessA surprise production cut announcement this week from Saudi Arabia and several other OPEC+ oil producers complicates the Federal Reserve's mission to cool the economy and could worsen inflation in the United States, economists say.
Read more »
The US economy is still creating problems for the FedIndicators like a rise in initial jobless claims, a drop in open job listings, and layoff increases all suggest a slowing in the labor market — and the economy — that is consistent with the Fed being able to back off its rate hikes.
Read more »