In Asian trading on Sunday (April 23), the latest price of EUR/USD was 1.0989, and the opening price was 1.0971. ECB Governing Council member Ignazio Visco said the ECB should proceed cautiously in raising interest rates in the future as credit growth slows and risks to financial stability persist.
Visco’s calls for a more experimental policy stand in stark contrast to European central bankers such as Dutch central bank chief Klaas Knot. Knot said the ECB may need to continue raising rates in June and July after raising rates at its next meeting on May 4. “There are two risks: if we do too little, we may have to do more in the future, with even greater damage to the economy,” he said. “If we do too much, we may overdo it, Especially now that there are some financial stability risks that we know about that are not directly related to the euro area but could be contagious and the risks could be there.”
The euro edged lower against the dollar as it snapped a five-week winning streak. The euro failed to rise above 1.1000, but it held above 1.0900, despite several dollar strengths, including after the upbeat US S&P global PMI data last Friday.
