ECB likely to raise rates by 25 basis points

In the Asian session on Wednesday (April 26), EUR/USD rose slightly, temporarily reporting 1.0978, an increase of 0.03%. ECB sources said the risk of doing too little now still outweighed the risk of doing too much, but the ECB was more likely to raise rates by 25 basis points in May rather than 50 basis points.

However, that will depend on whether there are any rather negative surprises in Eurozone inflation data for April. The initial value of April CPI in major countries in the euro area will be released this Friday, and the April CPI data in the euro area will be released next Tuesday, which will largely provide a reference for the European Central Bank‘s decision in May.