EUR/USD Faces Volatility Following Powell’s Statements on Rates
By [Errraand News]
[01/02/2024]
The EUR/USD pair experienced notable fluctuations as Federal Reserve (Fed) Chairman Jerome Powell’s remarks EUR/USD Faces Volatility Following
The EUR/USD pair experienced notable fluctuations as Federal Reserve (Fed) Chairman Jerome Powell’s remarks cast uncertainty on rate cut expectations. Initially, the pair surged above 1.0880 on hopes of an ECB rate cut, driven by disappointing German Consumer Price Index (CPI) inflation figures. However, the tables turned after Powell’s comments, leading to a retreat in EUR/USD to around 1.0850.
The rally in early Wednesday trading was triggered by German Retail Sales and CPI inflation missing expectations. The negative figures fueled speculation that the European Central Bank (ECB) might pursue an expedited rate cut path to counteract economic challenges.
