EURUSD Hits New Low Amid ECB Rate Cut Speculation

EURUSD Analysis – The euro fell to around $1.08, its lowest since March 1st, as investors responded to signs of slower wage growth and cautious remarks from some European Central Bank (ECB) officials while looking forward to Wednesday’s upcoming US Federal Reserve meeting. On Tuesday, ECB Vice President Luis de Guindos indicated the bank could consider cutting interest rates in June, highlighting the need for more information before changing any policies.

ECB President Christine Lagarde had started discussions on possibly lowering rates due to falling inflation, with the bank’s chief economist, Philip Lane, suggesting a move could happen in the second quarter. Importantly, central bank governors from Spain, the Netherlands, Ireland, Greece, and Slovakia, who are part of the 26-member Governing Council, have all backed a June action.

EURUSD Hits New Low Amid ECB Rate Cut Speculation