USD set for second week of gains - Euro currency news daily

Daily Currency Update

The value of the US dollar has increased for two consecutive weeks, driven by a stronger-than-expected US economy. This unexpected growth has caused investors and policymakers to reevaluate their predictions for Federal Reserve interest rate cuts this year. Just a couple of weeks ago, the market was expecting a rate cut by the Federal Reserve to begin in June. However, the Fed may now consider postponing any such actions until September.

Key Movers

The Governor of the Bank of England, Andrew Bailey, has suggested that the UK is likely to see a decrease in interest rates, following the latest official data indicating a continuous slowdown in economic price growth. Bailey made these comments just before the Office for National Statistics (ONS) published figures, which revealed that inflation, as measured by the Consumer Prices Index (CPI), had fallen to 3.2% over the twelve months ending in March, marking the lowest rate in two and a half years.

Expected Ranges

GBP/USD: 1.2405 – 1.2475

GBP/EUR: 1.1655 – 1.1705

EUR/USD: 1.0615 – 1.0705

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