Euro rose in European trade on Monday against a basket of major rivals, resuming gains after a short hiatus against the dollar and on track for three-week highs as the odds of early European rate cuts in April fade.
Now investors await important remarks by European Central Bank President Christine Lagarde, which could provide clues on the future of eurozone interest rates.
EUR/USD
EUR/USD rose 0.15% to 1.0832, with a session-low at 1.0813, after losing 0.1% on Friday, the first loss in eight days on profit-taking off three-week highs at 1.0888.
The pair rose 0.4% last week, the first weekly profit in a month and a half, and the largest in 2024.
The gains came as the concerns about a widening policy gap between the US and Europe fade following recent data from both markets.
European Rates
Recent remarks by several ECB officials in addition to wages data last week hurt the odds of a 0.25% ECB rate cut in April.
Markets now are leaning towards a May rate cut as the likely path ahead for European policies.
According to the ECB’s latest meeting minutes, officials agreed that it’s still too early to talk about interest rate cuts, despite signs of slowing inflation in the eurozone.
Christine Lagarde
European Central Bank President Christine Lagarde will speak later today on monetary policies, expected to offer hints on the future of interest rates.
Estimates
United Overseas Bank’s strategic analysts expect the EUR/USD pair to approach 1.0895 once more, provided the 1.0775 barrier held its ground.
Following such a step, the pair might aim higher at 1.0895, then 1.0935.
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