Suche
Mein Konto
Geopolitical tensions weigh on EUR/USD: traders seek refuge in the US dollar
Latest EUR/USD news ahead of Eurozone industrial production. Holding at 1.0650 despite geopolitical tensions. ECB and Fed monetary policy in focus.
Geopolitical tensions weigh on EUR/USD: traders seek refuge in the US dollar
EUR/USD is showing a slight rebound from five-month lows it hit despite hawkish tones surrounding the Fed's monetary policy outlook. The European Central Bank (ECB) could consider cutting interest rates in June if underlying inflation continues to slow as expected. The US Federal Reserve (Fed), on the other hand, is reassessing its monetary easing strategies in light of ongoing US inflation and strong macroeconomic indicators.
The EUR/USD pair came under downward pressure as the ECB and the Fed announced different monetary policy forecasts. The current price of EUR/USD is around the 1.0650 mark. Investors are turning their attention to the upcoming release of Eurozone industrial production data for March, while U.S. retail sales are also expected later in the day.
Geopolitical tensions, particularly in the Middle East, could cause traders to seek refuge in the safe haven of the US dollar. The recent conflict between Israel and Iran has worried markets. Israel responded to Iran's attack on Saturday, successfully intercepting most of the incoming missiles. Uncertainty in the region could further increase pressure on the EUR/USD currency pair.
ECB member Gediminas Šimkus' statement that the probability of more than three interest rate cuts in 2024 is over 50% throws additional uncertainty into the market. Šimkus emphasized that geopolitical events such as the escalation of the Israeli-Iranian conflict could influence the ECB's monetary policy decisions. Investors are closely monitoring developments as these geopolitical tensions could impact financial markets in the coming days.