The U.S. CPI (Consumer Price Index) announced the day before was lower than expected, reducing worries about high inflation. This caused U.S. long-term interest rates to rise. The euro, which had been falling, stopped its decline for the moment.
The ECB minutes released yesterday showed that one member requested a 0.5% rate cut and mentioned that medium-term inflation faces high downside risks. As a result, the euro dropped to 1.0260. However, dovish comments from Waller, a member of the Federal Reserve, led to a drop in U.S. long-term interest rates, allowing the euro to recover to the 1.03 range.
With U.S. long-term rates falling, short-term euro buying may continue, especially today, as it is the end of the week, and the euro is expected to remain steady.
However, as there is a high chance the ECB will cut rates by 100 basis points (1%) this year, the euro is likely to continue weakening in the long run.
EUR/USD Expected Range: 1.0350–1.0260
Note: The above information does not guarantee profits. Please make your own decisions when trading.