The euro retreated from its two-week high against the US dollar, experiencing its first loss in four days due to profit-taking, according to a recent article on Economies.com.
The euro had previously climbed above $1.1, with bullish comments from ECB officials further bolstering its prospects for a rate hike of 0.5% this week, pushing it towards fresh 12-month highs.
However, profit-taking caused the EUR/USD to fall by 0.2% to 1.1024, with its two-week high at 1.1067. The decline followed a rise of 0.5% the previous day, as the ECB officials’ remarks generated bullishness in the market.
While recent German data, such as the surge in business climate indices in April, has shown a strong recovery in the eurozone, concerns remain about the COVID-19 pandemic’s impact on the region.
ECB officials’ remarks on the possibility of a rate hike are contingent on upcoming inflation data, with ECB President Christine Lagarde stating that inflation in the eurozone remains too high. Markets are currently pricing a 70% chance of a 0.25% rate hike in May and a 30% chance of a 0.5% rate hike.
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Click here to read the original article (Economies.com)