Euro Hits New High Amid ECB Meeting Anticipation and Inflation Data Insights
Solid ECN – The euro rose sharply to $1.085, reaching its highest point since February 1. This spike was due to investors focusing on the European Central Bank's (ECB) next meeting about monetary policy later this week. They are looking for new information on the ECB's plans. Although the bank is expected to keep interest rates high, market participants are eager to hear any updates to economic forecasts and hints from ECB President Christine Lagarde about when borrowing costs might start to decrease.
Recent data showed that inflation in the Eurozone dropped again last month, making it the second month of decline, with a rate of 2.6% in February—a bit higher than the predicted 2.5%. The fundamental inflation rate also fell to 3.1%, above the expected 2.9%. This information suggests that the ECB is careful before reducing monetary policy measures.