ADIV - The Euro Remains Firm Ahead Of The First Time The ECB Will Cut Rates Before The Federal Reserve
2024-06-06 07:35:00 ET
Summary
- The dollar is mostly softer today, ahead of tomorrow's employment report.
- We suspect ECB officials will try to deliver a hawkish cut, by which we mean, framing the move to avoid the market driving down interest rates.
- The euro is in the upper end of its recent range, near $1.09.
Overview
The dollar ([[DXY]], [[USDOLLAR]]) is mostly softer today, ahead of tomorrow's employment report. The ECB meeting and President Lagarde's press conference are the main events today. There is little doubt that it will cut rates today, and do so ahead of the Federal Reserve for the first time. The ECB's forward guidance may be the key to the market's reaction. That said, the euro is in the upper end of its recent range, near $1.09. The Mexican peso, which was crushed at the start of the week following the election results, held April's flash crash low and is trading at a three-day-high, with the dollar near MXN17.45. Nearly all the emerging market currencies are also a little firmer today, with the Polish zloty's and Hungarian forint's small losses the exception....
The Euro Remains Firm Ahead Of The First Time The ECB Will Cut Rates Before The Federal Reserve