ECB will raise rates decisively | 10 May 2023

EURUSD trading plan:

The European Central Bank will keep raising borrowing costs until it sees core inflation decline sustainably, ECB board member Isabel Schnabel said, adding market expectations for rate cuts were misplaced. Schnabel backed the ECB's decision last week to slow down the pace of rate hikes but said these will continue until it sees a sustained fall in core prices, which typically exclude food and energy due to their wild swings. "Based on today's data, there is no doubt that we have to do more to bring inflation back to our 2% target in a timely manner," Schnabel told an event in Frankfurt. This is a positive signal for the European currency.

Investment idea: buy 1.0930 and take profit 1.1020.