On Friday, euro rates edged higher, but worries about a broad-based slowdown kept the currency in a tight range. Meanwhile, investors priced in the Federal Reserve's expected monetary tightening, which weakened the dollar.
ING analysts noted that lingering risks related to Russia, high energy prices, and Fed-ECB policy divergence were all factors contributing to a weaker rather than stronger EUR/USD.
Unicredit analysts said in a research note that the EUR/USD remains very stuck at around 1.10, despite better-than-expected PMI surveys across the eurozone for March.
Despite high petrol prices and driver shortages, German business morale declined in March, according to a survey released on Friday.
“I think hawkish remarks from the ECB have supported the single currency,” said Roman Ziruk, market analyst at Ebury.
ECB member Isabel Schnabel said on Thursday the bank will reconsider plans to end its bond-buying stimulus program this summer if the eurozone economy enters a 'deep recession'.
25 March 2022
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