In the Asian session on Tuesday (June 13), the latest price of EUR/USD was 1.0762, and the opening price was 1.0758. Ebury said that as Europe’s largest economy, Germany, fell into a “technical recession” for two consecutive quarters of decline, coupled with the sharp decline in the growth rate of Ireland and other countries, the economic growth rate of the euro zone was revised downward accordingly.
The minutes of the monetary policy meeting released by the European Central Bank showed that the core inflation trend was “worrying”. In this situation, more and more markets and research institutions are focusing their attention on the risk of stagflation, and some even believe that “the euro zone economy has largely confirmed stagflation.” European Central Bank President Christine Lagarde said that inflation in the euro area is still too high “and may continue for a long time” and that the ECB’s interest rate hike cycle will continue “until there is sufficient confidence to keep inflation under target within”.
The minutes of the European Central Bank’s monetary policy meeting in May showed that most of the ECB members supported a 25 basis point rate hike. However, the words are still in the ears, and the euro area has fallen into a “technical recession”, which is a severe test for the determination of the European Central Bank to continue to raise interest rates.
The euro defended its highest level against the dollar since late May, despite retreating from multi-day highs late on Monday, as euro bulls braced for a crucial day. Nonetheless, the major currency pairs held around 1.0760 early in the Asian session on Tuesday.
