Euro Drops as ECB Considers June Rate Cut Amid Slow Growth
Solid ECN – The euro fell toward the $1.08 mark, its lowest since March 1st, as investors processed reports of slower wage increases and cautious remarks from some European Central Bank (ECB) officials. They also looked forward to the Federal Reserve's policy meeting on Wednesday. ECB Vice President Luis de Guindos stated on Tuesday that the bank might consider lowering interest rates in June, highlighting the need for more information before changing policies.
ECB President Christine Lagarde mentioned possibly lowering rates earlier in the month due to falling inflation. The ECB's chief economist, Philip Lane, suggested a rate cut could come in the second quarter. Significantly, central bank leaders from Spain, the Netherlands, Ireland, Greece, and Slovakia, among the ECB's 26 Governing Council members, supported a decision in June.