Huitong Financial App-- EURUSD fluctuated in a narrow range at 01:23 Beijing time on Thursday, with an intraday report of 1.Pokerrunittwice.0843x44, down 0Pokerrunittwice.09%.
The president of the European Central Bank expressed confidence in fighting inflation
Cristina, President of the European Central Bank (ECB)Pokerrunittwice? Ms Lagarde said on Tuesday that she was "very confident" that inflation in the eurozone had been brought under control. Ms Lagarde's words convey certainty and confidence-the Fed and the Bank of England seem to be moving away from certainty and confidence. Ms Lagarde's comments are in sharp contrast to recent ECB statements. 'The price pressure is high and service price inflation remains high, which has little resistance to the across-the-board decline of the euro, 'the ECB said in a recent statement.
The German manufacturing PMI data to be released today are unlikely to cause a strong reaction in the market, as German manufacturing is still extremely depressed.
ECB officials have been talking intensively about the possibility of cutting interest rates in June, but many warn to exercise restraint before cutting rates in June. There is likely to be a "hawkish rate cut" in June, in which there is a clear hope for a slow and steady approach to future rate cuts. The market still expects the Fed to cut interest rates by 25 basis points twice and is likely to cut rates again by the end of the year (a total of 63 basis points).
Hint at the possibility of an interest rate cut by the European Central Bank
With the European Central Bank cutting interest rates approaching, the European Central Bank and itsPokerrunittwiceMonetary policy differences between his main central banks are becoming increasingly apparent. The Fed has only recently broken months of higher-than-expected inflation, and earlier this morning, UK inflation in April unexpectedly broke previous bets on interest rate cuts. Different expectations continue to have a negative impact on the euro, which can also be seen, but recent CoT data show a decline in long positions and an increase in short positions.
The EURUSD has fallen from last week's highs and hit channel resistance as a quiet week is naturally conducive to the dollar's recovery. The dollar fell significantly after the decline in CPI, but it recovered almost all of its losses this week as price movements continued on Thursday and Friday. The pair is currently testing channel support, the latest obstacle to a short-term bearish trend. The upstream channel remains intact, maintaining the broader uptrend of the euro against the dollar. If the dollar rebounds, the euro falls further against the dollar, with 1.0800 levels and 200-day simple moving averages in focus. However, if the broader upward trend continues, 1.0900 will become a resistance level. The German manufacturing PMI and the University of Michigan Consumer confidence report appear to be potential market drivers by the end of the week. The euro fell against sterling after the release of UK CPI data
On Wednesday, the euro suffered an impressive fall against sterling on the back of UK CPI data. Price increases were lower than expected, and service sector inflation exceeded even the most pessimistic expectations, sounding the alarm and slashing bets on interest rate cuts.
The euro against sterling fell below trendline support, but has recovered from intraday lows to 0.8515. 0.8515 supported prices in June and August 2023 and for most of 2024. If the daily closing price is below 0.8500, the bearish momentum is likely to continue, setting a new annual low. Resistance is at the previous trend line support level and is now at the resistance level. The relative strength index is rapidly approaching the oversold area, which means that bears may find it difficult to build momentum without a correction.
At 01:12 Beijing time, the euro / dollar fell 0.07 per cent to 1.0845. The euro / pound fell 39% to 0.8506 pound 08, down 0%.