In the Asian session on Thursday (June 8), EUR/USD strengthened, temporarily reporting 1.0707, an increase of 0.09%. Norte, the ECB’s governing council member and the head of the Dutch central bank, said he was “not yet convinced that the current austerity measures are sufficient,” saying on Wednesday that “inflation is likely to remain high for a long time, when further measures will be necessary.” rate hike”.
The latest from the European Central Bank:
Recent data has provided reason for optimism: both headline inflation and core inflation, which policymakers increasingly use as a guide, fell more than expected in May, while a European Central Bank survey on Tuesday showed that consumer Expectations for price movements have slowed markedly. Mahlouf said “more work needs to be done on monetary policy in the short term”, while ECB executive member Schnabel said there was “more work to be done” on borrowing costs, how much will depend on upcoming published data. Regardless, ECB policymakers have continued to stress that reintroducing prices is crucial to getting growth back on track. Investors and analysts are still predicting that the ECB will raise interest rates by 25 basis points next Thursday and in July, which would take the deposit rate to 3.75% from below zero in July last year.
