Euro Outlook: Signs of Fatigue Appear Ahead of Next Week’s ECB Meeting

United States News News

Euro Outlook: Signs of Fatigue Appear Ahead of Next Week’s ECB Meeting
United States Latest News,United States Headlines
  • 📰 DailyFX
  • ⏱ Reading Time:
  • 60 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 63%

The euro has shown signs of fatigue ahead of next week’s ECB meeting as institutional shorts pick up, attempting to narrow the gap

According to rates markets, the ECB will likely have to shave 100 basis points off the benchmark interest rate which would create a wider interest rate differential with the US. However, the euro has managed to arrest the decline that ensued at the end of December and remains around 1.0831. Any further declines might bring into focus the 1.0700 level but that may be difficult to come by as the ECB governing council is likely to reject any talk of imminent rate cuts.

Temporary consolidation appears more likely and a retest of the 164.31 level is not out of the question, particularly if Japan’s top currency official avoids deploying FX reserves to strengthen the yen. EU core inflation and the March ECB meeting make up the core of incoming EU scheduled risk but there is plenty of ‘high importance’ US data to consider as well. Markets will be looking for much of the same from ISM services data which maintains a 13-month streak above the 50 mark and next Friday sees a rather late US non-farm payroll report.Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.

We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. Information presented by DailyFX Limited should be construed as market commentary, merely observing economical, political and market conditions. This information is made available for informational purposes only. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

DailyFX /  🏆 305. in US

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.

Euro Price Outlook: Hot US CPI Weighs on the EuroEuro Price Outlook: Hot US CPI Weighs on the EuroUS CPI proved hotter-than-expected, sending the euro lower. Technically, the euro has a few lifelines which challenge the longevity of recent dollar strength
Read more »

Euro Collapsed Against BTC: Balaji Srinivasan on ECB Bitcoin CriticismEuro Collapsed Against BTC: Balaji Srinivasan on ECB Bitcoin CriticismCrypto Twitter mocking anti-Bitcoin tirade shared by European Central Bank officers
Read more »

Euro Weekly Outlook: EUR/USD, EUR/GBP, EUR/JPY - Analysis and ForecastsEuro Weekly Outlook: EUR/USD, EUR/GBP, EUR/JPY - Analysis and ForecastsThe ECB is looking increasingly likely to the be the first major central bank to start cutting interest rates, and this will affect the value of the single currency
Read more »

At Texas border rally, fresh signs the Jan. 6 prosecutions left some participants unbowedAt Texas border rally, fresh signs the Jan. 6 prosecutions left some participants unbowedJan. 6 defendants at 'Take Our Border Back' rally vow to start organizing again.
Read more »

Arizona Gov. Katie Hobbs signs bill giving counties more time to count votesArizona Gov. Katie Hobbs signs bill giving counties more time to count votesArizona Governor Katie Hobbs signed into law a proposal that will give election workers more time to tally votes.
Read more »

Critical Atlantic Ocean current system is showing early signs of collapse, prompting warning from scientistsCritical Atlantic Ocean current system is showing early signs of collapse, prompting warning from scientistsA crucial system of ocean currents may already be on course to collapse with devastating implications for sea level rise global weather — leading temperatures to plunge dramatically in some regions and rise in others.
Read more »



Render Time: 2025-02-11 19:02:58