Euro Stability Amid ECB Rate Cut Speculation
The euro stayed near $1.077, avoiding a recent low of $1.072 from February 5th, as market expectations for early European Central Bank (ECB) rate reductions cooled. This shift followed cautious statements from several ECB officials about easing financial policies. The likelihood of an ECB rate cut in April dipped below 50% after key figures like Philip Lane, the chief economist, and Pierre Wunsch, the head of the Belgian central bank, stressed the importance of confirming that inflation is moving towards the 2% goal before slashing interest rates.
Moreover, ECB member Robert Holzmann mentioned the possibility of not cutting rates at all this year or maybe just at the end. On another note, the US dollar gained strength from strong jobless claims data, suggesting the Federal Reserve might proceed cautiously with any policy changes.