Euro Hits New Low Amid Dollar Strength
Solid ECN - The euro fell to a new low of $1.07, its lowest since November 13th, as the US dollar grew more robust. This happened because people lost hope that the US Federal Reserve would start cutting interest rates soon. Meanwhile, the European Central Bank (ECB) is expected to slow down the easing of its monetary policy, even after some weak economic reports. Predictions now show that the ECB might cut interest rates by about 125 basis points this year, a decrease from the 160 basis points forecasted at January's end.
A survey from the ECB showed that people in the Eurozone expect inflation to be around 3.2% over the next year, the lowest expectation since February 2022. Additionally, the Eurozone saw its most significant drop in retail sales in a year this December, while Germany's factory orders increased by 8.9%, the highest in more than three years, mainly due to a very high number of aircraft orders.
A survey from the ECB showed that people in the Eurozone expect inflation to be around 3.2% over the next year, the lowest expectation since February 2022. Additionally, the Eurozone saw its most significant drop in retail sales in a year this December, while Germany's factory orders increased by 8.9%, the highest in more than three years, mainly due to a very high number of aircraft orders.