Euro Steadies Against US Dollar Ahead of ECB Signals
The euro steadied just above $1.17, hovering near last week’s four-year high of $1.192, as investors looked ahead to the HCOB flash Purchasing Manager Index survey.
The market also awaits monetary indicators and a series of speeches from European Central Bank and Federal Reserve officials that could shape the policy outlook.
There was some pushing and pulling in the dollar after the Fed last week. But at the balance, the greenback is keeping steadier with a modest rebound against some of the major currencies bloc.
EUR/USD is keeping with a rejection of the 1.1900 mark while GBP/USD slides back to under 1.3500 for now, keeping just below its 100-day moving average of 1.3479.
The European Central Bank signalled its rate-cutting cycle may be over, with policymakers warning of persistent inflation risks linked to tariffs, services, food prices, and fiscal policy.
In contrast, the Federal Reserve cut interest rates for the first time since December and indicated another 50 basis points of reductions could follow by year-end.
Still, Chair Jerome Powell described the move as a “risk management” adjustment rather than the start of a full easing cycle. With the statement, the Fed provided long-term guidance to FX traders.
Traders are still largely digesting what to make of the post-Fed mood, especially now that the onus is on US economic data to prove market players wrong with regard to the Fed outlook.
The EUR/USD pair opened Monday’s session with a deeper slide to the lower levels of a short-term descending channel. The pair briefly dipped closer to $1.17 before shooting just a bit higher to float at $1.1750. #Euro Steadies Against US Dollar Ahead of ECB Signals Airtel Africa Enters $20.3m Shares Repurchase Deal with Barclays
