EUR/USD tumbles to 1.0660 on firm ECB rate cut bets for June

FXStreet
Updated Apr 12, 2024 12:42
Mitrade

  • EUR/USD slumps to 1.0660 as ECB rate cut bets for June strengthen.


  • The US Dollar strengthens as the Fed is anticipated to start reducing interest rates later this year.


  • Investors shift focus to the US Retail Sales data that will be published on Monday.



The EUR/USD pair extends its downside to near five-month low around 1.0660 in Friday’s European session. The major currency pair falls sharply on firm speculation that the European Central bank (ECB) will begin reducing interest rates from the June meeting.


The ECB kept its key borrowing rates unchanged on Thursday at 4.5% to maintain downward pressure on the consumer price inflation. In the monetary policy statement, the ECB said that restrictive financial conditions and interest rate hikes yet made are weighing on the overall demand and pushing downward pressure on inflation.


Also, the ECB said that it will remain data-dependent to determine how long interest rates are needed to remain restrictive. The central bank refrained from committing to any particular rate path.


The speculation for ECB pivoting to rate cuts from June strengthen after ECB President Christine Lagarde said that if a fresh assessment increased policymakers' confidence that inflation is heading back to target, then it "would be appropriate" to cut interest rates, Reuters reported.


Meanwhile, the market sentiment is downbeat as traders pare big bets leaning to Federal Reserve (Fed) beginning to reduce interest rates from the June meeting. S&P 500 futures have posted losses in the European session. 10-year US Treasury yields falls slightly after refreshing more than four-month high near 4.60%. The US Dollar Index (DXY), which tracks the US Dollar’s value against six major currencies, jumps to near five-month high around 106.00.


Going forward, investors will shift focus to the monthly Retail Sales data, which will be published on Monday. The Retail Sales data is a leading indicator of consumer spending. Higher Retail Sales suggests robust consumer spending, which leads to a stubborn inflation outlook.




EUR/USD

Overview
Today last price 1.066
Today Daily Change -0.0066
Today Daily Change % -0.62
Today daily open 1.0726
 
Trends
Daily SMA20 1.0825
Daily SMA50 1.0826
Daily SMA100 1.087
Daily SMA200 1.0831
 
Levels
Previous Daily High 1.0757
Previous Daily Low 1.0699
Previous Weekly High 1.0876
Previous Weekly Low 1.0725
Previous Monthly High 1.0981
Previous Monthly Low 1.0768
Daily Fibonacci 38.2% 1.0721
Daily Fibonacci 61.8% 1.0735
Daily Pivot Point S1 1.0698
Daily Pivot Point S2 1.067
Daily Pivot Point S3 1.064
Daily Pivot Point R1 1.0755
Daily Pivot Point R2 1.0785
Daily Pivot Point R3 1.0813

 

 

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

Do you find this article useful?
Related Articles
placeholder
7 Powerful Forex Trading Strategies/Tips for Consistent ProfitsLearn the 7 powerful Forex trading strategies to improve your trading skills.
Author  Mitrade
Learn the 7 powerful Forex trading strategies to improve your trading skills.
placeholder
Forex Market Hours, Every Forex Trader Cannot MissKnowing what currency pairs to trade is vital in the forex market. Knowing when to trade is equally essential.
Author  Tony
Knowing what currency pairs to trade is vital in the forex market. Knowing when to trade is equally essential.
placeholder
Japanese Yen Analysis & Forecast In 2024/2025/2026: Should I Buy USD/JPY Or Other JPY Currency Pairs?At the beginning of March 2022, the USD/JPY exchange rate sharply increased due to the Federal Reserve's interest rate hike policy aimed at curbing inflation, while the Bank of Japan continued to maintain negative interest rate policies to support the economy after the COVID-19 pandemic. By mid-October 2022, the USD/JPY exchange rate reached 151.94, the highest level since April 1990. Subsequently, the USD/JPY exchange rate started to decrease following reports suggesting that the Fed would ease off on interest rate hikes from December 2022, touching 127.5 by mid-January 2023.
Author  Mitrade
At the beginning of March 2022, the USD/JPY exchange rate sharply increased due to the Federal Reserve's interest rate hike policy aimed at curbing inflation, while the Bank of Japan continued to maintain negative interest rate policies to support the economy after the COVID-19 pandemic. By mid-October 2022, the USD/JPY exchange rate reached 151.94, the highest level since April 1990. Subsequently, the USD/JPY exchange rate started to decrease following reports suggesting that the Fed would ease off on interest rate hikes from December 2022, touching 127.5 by mid-January 2023.
placeholder
Top 10 Must-Have Forex Technical Indicators That Every Trader Should UseYou can apply forex indicators to charts to visually represent market trends, patterns, and potential entry and exit points.
Author  Saqib Iqbal
You can apply forex indicators to charts to visually represent market trends, patterns, and potential entry and exit points.
placeholder
Hedging in Forex: How do Professionals Hedge?What is hedging exactly, and what is the right way to do it in Forex?
Author  Mitrade
What is hedging exactly, and what is the right way to do it in Forex?