Home Daily Commentaries Euro extends its losses against the US dollar

Euro extends its losses against the US dollar

Daily Currency Update

The euro extended losses against the US dollar below the 1.07 level, touching its lowest level on March 17, as investors digested important inflation data for the Eurozone economies.
Inflation reports from both France and Spain showed larger-than-expected decreases in inflation rates, while German regional CPI indicated a moderation in inflationary pressures within Europe's largest economy.
The European Central Bank is expected to move forward with a series of interest rate hikes throughout the year, with policymakers suggesting that the projected increase in June would not end there.

Key Movers

The pound rose back above 1.24 against the US dollar, recovering from a two-month low of 1.2306 reached last week.

GBP was supported by expectations of additional interest rate increases by the Bank of England, following data indicating that domestic inflation was not easing as initially anticipated.

Expected Ranges

  • GBP/USD: 1.2305 - 1.2385 ▼
  • GBP/EUR: 1.1555 - 1.1625 ▲
  • EUR/USD: 1.0605 - 1.0685 ▼