The euro is already losing almost 1% to the dollar due to the dovish ECB remarks. EURUSD below 1.08
The communiqué and the ECB conference were very dovish, contrary to market expectations. Investors believed that due to high inflation in the eurozone, the ECB would decide to act faster. However, this did not happen. The ECB intends to end the asset purchases program in line with expectations, by the end of Q3, and interest rates will rise only when inflation exceeds 2% in the forecast period. Thus, EURUSD pair fell to its lowest level since May 2020, and the dollar is seeing the largest increase in relation to the currency basket this month.
Source: xStation5
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