EUR/USD rises to near 1.1500 ahead of German Retail Sales, Eurozone HICP
EUR/USD inches higher after five days of losses, trading around 1.1480 during the Asian hours on Tuesday. Traders will likely observe the German Retail Sales and Unemployment data for February due later in the day, along with preliminary Eurozone Harmonized Index of Consumer Prices (HICP) figures for March.
Bank of France Governor François Villeroy de Galhau said on Monday that policymakers stand ready to act if energy-driven inflation broadens. He added that the Iran war-related energy shock is likely to be inflationary in the near term, though the European Central Bank cannot prevent the initial surge in prices.
The EUR/USD pair appreciates as the US Dollar (USD) declines after five consecutive days of gains. However, the Greenback may rebound amid rising safe-haven demand linked to uncertainty surrounding the Middle East tensions.
The Wall Street Journal (WSJ) reported that US President Donald Trump is open to ending the Iran war without reopening the Strait of Hormuz, signalling shifting priorities. However, continued US troop deployments point to mixed messaging and persistent risks to global energy flows.
Federal Reserve (Fed) Chair Jerome Powell noted on Monday that long-term US inflation expectations remain well anchored despite heightened Middle East uncertainties and emphasized that the Federal Reserve policy stance allows officials to evaluate the economic impact of the Iran conflict.
New York Fed President John Williams said that monetary policy is well-positioned for any unusual circumstances and told Reuters that the job market is still sending mixed signals on Monday.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
US Treasury volatility surges, triggering alarms! BofA’s Hartnett warns of rising deleveraging risks as higher yields become main threat to the market
Bank of America strategist Michael Hartnett warns that the recent sharp rise in volatility in the US bond market is increasing the risk of broader deleveraging in financial markets.
U.S. diesel prices surge 83% this year! Apollo Chief Economist warns: Cost pass-through may make core inflation more stubborn, Federal Reserve can't ignore it
Torsten Slok, Chief Economist at Apollo Global Management, has warned that the inflation threat posed by the surge in U.S. diesel prices to historic highs may be more serious than the Federal Reserve currently realizes.
Goldman Sachs Estimates AI Compute Power Gamble: Six Tech Giants Need to Earn an Extra $1.42 Trillion from 2028 to 2030 to Sustain 15% ROIC
Goldman Sachs recently released a research report on the US technology industry, estimating the necessary scale of the AI economy required to justify the ROIC of hyperscale cloud providers' AI capital expenditures.
Crypto prices
More
