EURUSD falls as ECB slows down
As the ECB could be approaching the end of their tightening journey, the euro may continue to fall. Several policymakers hinted that the final rate would be set by the end the summer, after a sharp rise of 375 base points in the past 10 months. Mirroring the market’s reaction to the US Fed’s pivot, participants’ focus has shifted to how long interest rates will stay elevated. A new set of inflation figures may show the impact that the hikes had on the economy and could tip the balance. The slowing divergence of central banks may dampen enthusiasm for the euro. The pair has been drifting toward 1.0540 The following are some examples of how to get started: 1.1080 It is time for a new form of resistance.
USDCHF rises on Fed’s hawkish comments
The US dollar recoups some losses as the Fed’s rate normalisation campaign is yet to end. Officials’ sporadic assertive comments that the central bank needed to go further in tightening monetary policy have kept the dollar bulls hopeful. Hawks, like Minneapolis Fed president Neel Kashkari, have said that rates might have to reach 6% to get inflation down to 2%. Although the range is still debated, a clear bias in favor of higher rates could help recover the greenback as the market might have gone…