Euro Settles at $1.13 Ahead of Fed Policy Decision
The euro held above $1.13, supported by easing trade tensions after U.S. President Donald Trump reiterated that China remains open to a deal. For today, the dollar is weak with the risk mood leaning towards the softer side. S&P 500 futures are down 0.7%, and that’s seeing the dollar down across the board as well. So, those are the more important things to note.
Investors also looked ahead to key monetary policy decisions from the Federal Reserve, Bank of England, Norges Bank, and Riksbank. The Fed is widely expected to keep interest rates unchanged following a solid April jobs report. In contrast, the Bank of England is seen as likely to cut rates due to rising concerns over the economic and inflationary impact of tariffs.
Both Norway’s Norges Bank and Sweden’s Riksbank are expected to maintain current rates. In the Eurozone, unexpectedly strong inflation data reinforced expectations of 60 basis points in rate cuts from the European Central Bank by year-end.
Headline inflation held steady at 2.2% in April, slightly above the 2.1% forecast, while services inflation jumped to 3.9% and core inflation—excluding food and energy—rose to 2.7%, both exceeding expectations. #Euro Settles at $1.13 Ahead of Fed Policy Decision#
