Euro rose in European trade on Thursday against a basket of major rivals, extending gains for the seventh straight session against the greenback and hitting a three-week high following bullish remarks by ECB officials, which hurt the odds of early ECB rate cut in April.
Now investors await a batch of important European data on services and manufacturing this week, which will help determine the likely path ahead for policies.
EUR/USD
EUR/USD Rose 0.6% to 1.0888, the highest since February 2, with a session-low at 1.0811.
EUR/USD rose 0.1% on Wednesday, the sixth profit in a row, and the longest such streak of daily gains in 2024.
European Remarks
Belgian Central Bank Governor Pierre Wunsch said investors expect the ECB to start easing policies a short duration after an inflation slowdown, but it could be premature.
He added it’s possible for ECB monetary policies to remain strict for longer than currently expected.
European Rates
Following the bullish remarks and wages data this week, traders cut the odds of a 0.25% European interest rate cut in March.
The odds are now on May as the likely date for the first ECB interest rate cut.
Major Sectors
Investors now await a basket of important European data on services and manufacturing to gauge the state of economic performance.
The eurozone economy started improving in the fourth quarter of last week after shrinking in the third quarter due to weaker spending and lower Chinese growth.
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