The EUR/USD pair continues to decline, reaching a low of 1.0920 on Thursday due to increasing selling pressure on the euro. The US dollar is benefiting from a bid bias, with the USD Index (DXY) approaching the 102.00 level.

Despite hawkish comments from ECB rate setters, the pair has been unable to sustain any upward momentum beyond the 1.1100 mark.

ECB Board member M. Kazaks recently suggested that a rate hike in July may not be the last one, as inflation remains elevated. This supports speculation of another quarter-point hike in September, which would raise the deposit rate to 4.0%.

There are no scheduled releases in the euro calendar on Thursday, with the focus on the publication of Producer Prices and Initial Jobless Claims in the US.

The EUR/USD pair is expected to be influenced by the behaviour of the US dollar and any differences in approach between the Fed and the ECB regarding interest rates.

While hawkish ECB-speak continues to support further rate hikes, there is some loss of momentum in economic fundamentals in the region, which may affect the euro’s value in the future.


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