Industry Insights
Euro Subdued ahead of key Economic Data
The euro was slightly retreating in the early session and stabilized to a certain extent after a rebound against the US dollar since mid-April, supported by improving economic conditions in the Eurozone. The ECB continues to maintain its interest rates at a record high of 4.5%, compared to the US rate of 5.5%. Despite the European Central Bank keeping lower interest rates compared to the US, the euro has been strengthening since its April lows, supported by more robust business activity and positive economic indicators in Europe. This contrasts with the recent underperformance of the US economy relative to market expectations. However, the euro’s recent rally could face pressure. It is anticipated that the ECB could cut rates more aggressively than the Federal Reserve, which could expand the rate gap and potentially bring the euro closer to parity if market expectations shift. Nevertheless, the downside risk on the euro may remain limited, as any sustained weakness in the euro could affect imported inflation and influence the ECB’s monetary decisions. The euro could appreciate further if economic sentiment in Europe improves above market expectations. On Wednesday, volatility could increase in the euro-dollar pair as all eyes will be on US inflation data. The market expects a slight decrease month-on-month in April, down to 0.3% from 0.4% in March. A weaker-than-expected inflation reading could drive the dollar lower and support the euro. US Treasury yields could also react to the release of inflation data and could come under pressure if inflation declines further.
Recent Articles
News
The rhythm of interest rates. How investors dance with central banks on a floor of inflation
Blog
Understanding the risks associated with your portfolio is vital to protecting your assets
News
The Silver Market: surging demand and tight supply point to a golden trading opportunity
News
May 2023 Market Watch: Understanding the Euro's Performance Amidst Heightened U.S. Debt Concerns
Blog
Client expert Sahar Fadhl: there is no such thing as sales, only an emotional bond of mutual wishes
Blog
After a glorious start, stock markets start to decrease a little in value. To what will this lead?
Blog
European stock market opens 2023 divided. Do investors have to hold their breath to dive into a deep recession?
Join Our Team
At DHF Capital, we value the unique insights and contributions that both experienced professionals and recent graduates bring to our team. We are on a steady path of growth and innovation, and are always interested in engaging with individuals who share our commitment to excellence in the financial sector. Our collaborative environment provides a platform for continuous learning and professional development, allowing you to contribute to, and grow with, the evolving landscape of our services.
We invite you to reach out and learn more about the opportunities awaiting you at DHF Capital. Whether you're a seasoned professional or a recent graduate, there's a place for you here to help shape the future of financial solutions. Contact us to explore a rewarding career and be a part of a team that values integrity, expertise, and a shared goal of providing exceptional financial solutions.
Apply nowHead office
DHF Capital SA, 21 Rue Glesener, 1631 Gare Luxembourg, LuxembourgCopyright 2014-2023 DHF Capital S.A. All Rights Reserved