EUR/USD: Central banks to favor the euro
|The Fed is set to cut rates while the ECB is hesitating. EUR/USD is mostly moving on news related to the respiratory disease and Yohay Elam, an analyst at FXStreet, depicts the reason for the rise in the pair.
Key quotes
“The short end of the curve is implying an imminent rate cut in March – a dramatic change that is weighing heavily on the dollar. The greenback has come under immense pressure across the board.”
“Christine Lagarde seemed to rule out immediate monetary stimulus in a conversation with the Financial Times on Thursday. And while Vitas Vasiliauskas, a member of the ECB, said that the Governing Council could meet in an extraordinary matter, he admitted there is little room for action.”
“The old continent's largest economy is taking baby steps toward unleashing its spending potential. Investors are paying money to lend funds to the German government. If Germany spends – on battling coronavirus, infrastructure, or green projects – the ECB would be relieved of doing more.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.