Euro's Steady Surge Spurs ECB Caution Amidst Economic Growth
The Euro appreciated by 0.9% against the Dollar to end the week trading at 1.086. Figures showed the Eurozone returned to growth in Q1, with a 0.3% increase in GDP. Inflation remained flat at 2.4%, causing ECB members to caution against moving too fast on further rate cuts following their expected easing in monetary policy in the next meeting in June. Weakening US data will be a relief to ECB members who are perhaps not facing the widening interest rate divergence they feared following Q1 data releases.
Published on 22 May 2024
The Euro's 0.9% uptick against the Dollar, alongside Eurozone's Q1 GDP growth and stable inflation, prompts ECB's vigilance on monetary policy adjustments despite US economic softening.
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