EUR/USD bulls assume command in response to hawkish ECB remarks.
Bulls in the EUR/USD rise again in response to aggressive ECB rhetoric. This week, attention will focus on the red calendar events. Since the beginning of the week, EUR/USD has been trading close to a 9-month high as the market anticipates rate increases from the European Central Bank at the same time as it begins pricing in a less hawkish Federal Reserve. The EUR/USD surged higher and hit a new bull cycle high of 1.0927.
Almost all potential Fed moves of 50 basis points were priced out in Monday’s trading, and the expected peak for rates has been slowly cut from the present 4.25% to 4.50% range to 4.75% to 5.0%. On the other hand, according to Reuters, ECB policymaker Peter Kazimir said on Monday that although inflation was lowering, it was not a cause to halt the rate of an interest rate increase.
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