The ECB is expected to deliver two more rate cuts this year.
Lower-than-expected US Initial Jobless Claims offered relief to widespread risk-aversion.
EUR/USD trades sideways above the round-level support of 1.0900 in Friday’s European session. The major currency pair trades inside Thursday’s trading range, with investors looking for fresh cues indicating how much the European Central Bank (ECB) and the US Federal Reserve (Fed) will cut interest rates this year.
The ECB is expected to cut interest rates two times more this year as the Eurozone economy is going through a rough phase, and price pressures are on track to return to the desired rate of 2%. However, ECB officials continue to refrain from committing to a pre-defined rate-cut path as they expect the way towards the central bank’s target of 2%.
On Wednesday, Finnish ECB policymaker Olli Rehn said in a speech, "Inflation continues to slow down but the path to the two percent target remains bumpy this year." “He added the rate cuts would help the eurozone economy recover, in particular the "fragile" industrial growth and subdued investments,” Reuters reported.
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