EUR/USD Strengthens Above 1.1350, ECB Cuts Rates By 25 Bps
The EUR/USD pair attracted some buyers near 1.1370 during the early Asian session on Friday (4/18). Concerns over the economic impact of tariffs continued to drag the US Dollar (USD) lower against the Euro (EUR). Traders will be closely monitoring developments surrounding the US trade talks. Trading volumes are likely to be thin on Good Friday.
The European Central Bank (ECB) cut interest rates for the third time this year on Thursday, bringing its main rate to 2.25% in response to slowing growth and US President Donald Trump’s tariffs. ECB President Christine Lagarde said during a press conference that US tariffs on EU goods, which have increased from an average of 3% to 13%, have hurt Europe’s economic outlook.
Analysts believe that a further rate cut in June is still very much on the cards and that only a major easing in trade tensions would convince the ECB to hold off. "The tone is dovish. The focus has shifted to looking at downside risks to the growth outlook rather than upside risks to inflation," said Kirstine Kundby-Nielsen, FX strategist at Danske Bank. The ECB's dovish stance could weigh on the common currency in the near term.
Source: FXStreet
