EUR pulls back in spite of hawkish ECB members

13:58 9 May 2023

EURUSD drops below 1.1000 as markets are positioning for tomorrow's US CPI print. From a short-term perspective, divergence between EURUSD and TNOTE is being closed. On the other hand, traders were offered some hawkish comments from ECB members Kazaks and Nagel.

Kazaks

  • Rate hikes may not end in July (ECB announced that it will make at least one more hike but market prices in at least 2 hikes)

  • Market is premature to price in first rate cuts as soon as early-2024

Nagel

  • Inflation remains too high

  • Interest rates should rise further

  • Market is not always right when it comes to terminal rate pricing

EURUSD is pulling back with the move being primarily driven by USD strengthening. Source: xStation5

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back

Join over 1.4 Million investors from around the world