Market news
31.05.2022, 22:30

EUR/USD oscillates above 1.0730 ahead of ECB’s Lagarde, Eurozone jobless rate, and US ISM PMI

  • EUR/USD is juggling around 1.0733 ahead of multiple economic events.
  • An improvement is expected in the eurozone jobless rate at 6.7% vs. 6.8% earlier.
  • ECB policymaker is expecting two consecutive rate hikes in June and September by 25 bps.

The EUR/USD pair is displaying back and forth moves in a narrow range of 1.0730-1.0740 in early Tokyo. The major displayed a sheer reversal on Tuesday after hitting a low of 1.0679. A firmer rebound in the shared currency bulls is backed by rising odds of a rate hike by the European Central Bank (ECB) in its June monetary policy.

Soaring inflation in the eurozone is demanding the deployment of quantitative measures, which will incorporate a ceiling on the inflationary pressures. On Tuesday, Eurostat reported the annual Harmonized Index of Consumer Prices (HICP) at 8.1% vs. the expectation of 7.7% and the prior print of 7.4%.  A significant upside in the inflation numbers in Europe is compelling for an end of the lower rates cycle and rate hikes will be featured by the ECB in its upcoming monetary policy meetings.

Meanwhile, ECB Chief Economist Philip Lane has advocated two consecutive interest rate hikes by 25 basis points (bps) in June and September. This has bolstered the odds of a rebound in the ECB’s interest rate curve.

Going forward, investors will focus on the speech from ECB President Christine Lagarde and the release of the eurozone Unemployment Rate. Considering the galloping inflation levels, investors should brace for hawkish commentary from ECB’s Lagarde. While the eurozone Unemployment Rate is seen at 6.7% against the prior print of 6.8%.

On the dollar front, the US dollar index (DXY) is experiencing barricades around 101.80 ahead of the ISM Manufacturing PMI, which is seen lower at 54.5 against the former figure of 55.4.

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location