EUR/USD DECLINES TO NEAR 1.0870 AS ECB VILLEROY SEE RATE-CUT EXPECTATIONS AS APPROPRIATE
- EUR/USD slumps to near 1.0870 amid multiple headwinds.
- ECB Villeroy sees prospects of two more rate cuts this year as appropriate.
- The US Dollar recovers amid speculation that Donald Trump will win the US presidential elections.
The EUR/USD pair corrects further to near 1.0870 in Friday’s European session. The major currency pair weakened due to multiple headwinds: firm speculation that the European Central Bank (ECB) will cut interest rates two times more this year and a sharp recovery in the US Dollar (USD).
On Thursday, the ECB left key rates unchanged at their current levels. ECB President Christine Lagarde refrained from committing to a pre-defined rate-cut path.
In Friday’s late Asian trading hours, ECB policymaker Francois Villeroy de Galhau said in an interview on French radio BFM Business that market expectations for the ECB delivering two more rate-cuts this year, with resuming the policy-tightening campaign from the September meeting and following in December as appropriate.
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