The post EUR/USD remains subdued around 1.0350 as ECB maintains a dovish outlook for this year appeared on BitcoinEthereumNews.com.

EUR/USD faces headwinds as the ECB sustains its dovish stance on interest rate policy for 2025. The ECB is anticipated to reduce its Deposit Facility rate to 2%, regarded as the neutral rate, by June 2025. The US Dollar Index surged to multi-year highs following the Federal Reserve’s hawkish policy shift. EUR/USD continues to lose ground for the fourth successive day, trading around 1.0350 during the Asian hours on Thursday. The Euro faces challenges as the European Central Bank (ECB) maintains dovish guidance on interest rates policy for this year. The ECB reduced its Deposit Facility rate by 100 basis points (bps) to 3% in 2024 and is expected to lower it further to 2%—considered the neutral rate—by the end of June 2025. This indicates that the central bank will likely cut its key borrowing rates by 25 bps at each meeting during the first half of this year. On Wednesday, ECB President Christine Lagarde stated that the central bank aims to achieve its 2% inflation target by 2025. Lagarde remarked, “We made significant progress in 2024 in bringing down inflation, and we are hopeful that 2025 will be the year we reach our target, as expected and aligned with our strategy.” She added, “Of course, we will continue our efforts to ensure that inflation stabilizes sustainably at the 2% medium-term target.” The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against its six major peers, rebounded to multi-year highs and traded around 108.50 due to the US Federal Reserve’s (Fed) hawkish pivot. The Federal Reserve may adopt a more cautious outlook regarding further rate cuts in 2025, signaling a shift in its monetary policy stance. This change reflects uncertainties surrounding potential policy adjustments in light of the anticipated economic strategies of the incoming Trump…

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Filed under: News - @ January 2, 2025 1:44 am