 Euro weakens broadly following ECB's decision to maintain interest rates unchanged, coupled with explicit suggestions of a potential rate cut ahead. However, selloff has been relatively mild, primarily because ECB's statement didn't serve as a definitive pre-announcement of rate cuts, unlike its 2022 guidance on rate hike. Moreover, the conditional guidance regarding future rate adjustments had been largely anticipated, given previous communications from ECB officials. Still, risk is now mildly on the downside for the common currency, especially in crosses. Concurrently, Dollar is also paring some of its post CPI strong gain, after PPI data came in lower than market expected. While the PPI report might not significantly hasten a Fed rate cut in June, it at least doesn't push it further in time. Meanwhile, the greenback's pullback remains slight. Renewed selloff in US stocks could trigger further gains for Dollar... |
