EUR/USD: New YTD lows for Euro as dust from hot US inflation hasn't settled
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The Euro has reached new year-to-date lows against the US dollar as the dust from the hot US inflation announcement has not settled. The European Central Bank (ECB) meeting did not bring any surprises, with President Christine Lagarde avoiding questions about interest rate cuts. Bets on a possible June rate cut remain high. The US dollar maintains an advantage in relation to key interest rates, which could widen the gap if the ECB reduces rates in June without the Fed doing the same. International stock markets have reacted surprisingly and pared down some recent losses, but concerns about high inflation, high interest rates, and geopolitical issues create a dangerous cocktail for the global economy. The University of Michigan's index of consumer sentiment is the only notable event on today's agenda. The author remains loyal to their view of buying the Euro near 1.06 levels, expecting signs of fatigue in the US dollar's bullish trend and a reactionary behavior from the Euro.
#Eur/usd #Euro #UsDollar #Inflation #EuropeanCentralBank #InterestRates #UsEconomy #InternationalStockMarkets
https://www.fxstreet.com/analysis/eur-usd-new-ytd-lows-for-euro-as-dust-from-hot-us-inflation-hasnt-settled-202404120812