02 May 2024, EUR/USD
EURUSD:
The Euro-Dollar pair continues to strengthen on Thursday as the prevailing positive sentiment in the market lends support to risk-sensitive currencies such as the Euro. The increased risk appetite can be attributed to Federal Reserve Chairman Jerome Powell's remarks on Wednesday. Powell rejected the likelihood of further interest rate hikes after the Fed decided to keep interest rates at 5.25%-5.50% at its May meeting on Wednesday. EUR/USD rose to 1.0720 during the Asian trading session.
According to a Reuters report, Fed Chairman Jerome Powell said that inflation progress has stalled recently, suggesting that it will take longer than previously expected to bring inflation down to the 2% target. Powell also noted that if strong job growth continues and inflation remains stagnant, it would warrant a delay in rate cuts.
In the Eurozone, the euro may struggle due to the European Central Bank's softer stance compared to the U.S. Federal Reserve. The latest inflation data showed that Eurozone inflation remained flat in April, as expected. In addition, core inflation declined, which increased expectations for a possible ECB interest rate cut in June.
Trading recommendation: Trade mainly with Buy orders from the current price level.
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