(ABM FN-Dow Jones) The euro traded around $1.0860 on Tuesday, putting the European currency a cent below last week’s peak, which it reached after the Federal Reserve’s softer-than-expected tone, particularly in the ‘dot plot’.
“It promises to be a fairly quiet week in the run-up to Easter,” currency trader Stéphane van der Meer of currency broker Ebury told ABM Financial News on Tuesday. “With not too many incisive macroeconomic data on the agenda today, Wednesday and Thursday, the emphasis on macro data is on Friday, when the French release a provisional inflation figure for March and the Americans publish core inflation for February,” said Van der Meer.
Fed director Lisa Cook said in a lecture at Harvard University on Monday that the Fed should take a cautious approach to cutting interest rates. Cook indicated that the Fed should not act too early, because then there is a chance that inflation will become more persistent, but also not too late, as that entails the risk of a recession.
Last week, the Fed’s dot plot showed that the number of Fed directors who envisage two to three interest rate cuts this year is equal to the number of voters who opt for more than three.
There is one speaker in the spotlight for Tuesday and that is ECB director Philip Lane.
The euro was 0.2 percent higher on Tuesday at 1.0857 dollars. The European currency was flat at 0.8576 British pounds. The British pound rose 0.2 percent to $1.2659.
Source: ABM Financial News
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