In the early Asian session on Thursday (June 12th), the euro rose against the US dollar and is currently trading around 1.15. As of 11:30 Beijing time, the euro was quoted at 1.1517 against the US dollar, up 0.28%. The euro closed at 1.1485 against the US dollar in the previous trading day.
European Central Bank (ECB) Governing Council member Peter Kazimir said that the ECB’s rate cut cycle is nearing its end and that data observed over the summer months should be used to determine whether further policy fine-tuning is needed.
The ECB just cut interest rates last week. After experiencing the fastest rate cut cycle since the global financial crisis of 2008/2009, it may temporarily halt further rate cuts. The current deposit rate of the ECB is 2%.
The market expects that it may be cut again to 1.75% before the end of the year. Kazimir believes that although economic growth may be weaker than expected, it is wrong to ignore the risk that inflation may rise. He emphasized that the data to be released successively in the summer would provide clearer guidance on whether further policy adjustments were needed.
Technical Analysis of EUR/USD
The exchange rate of the euro against the US dollar remained above the 200-day simple moving average (SMA) of 1.0825, and the overall upward trend remained unchanged.
Resistance Levels:
- The high point of the year at 1.1572 (April 21st)
- The integer level of 1.1600
- The further resistance level is the high point on October 28th, 2021, at 1.1692
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