- French President Emmanuel Macron’s announcement of a snap local election following the EU Parliament elections has added to market uncertainty.
- This political development, combined with recent ECB rate cuts, has pushed the EUR/USD to a 5-week low, with 1.0700 becoming a potential target for bears.
A high number of European Central Bank (ECB) officials are making public speeches in the 24 hours before the Fed rate decision this week Wednesday that could help or hinder the EUR/USD.
Also, thrown in the mix now is French President Emmanuel Macron’s decision to call for a snap local election after the results of the EU Parliament elections, adding to market uncertainty.
The EURUSD has extended to a 5-week low. 1.0700 could be the next target for the bears as the price has now moved into a swing area between 1.0718 and 1.0750.
Perhaps the most important speeches will come from Luis de Guindos (Vice-President of the ECB), Philip R. Lane (ECB Executive Board member), and Claudia Buch (ECB Supervisory Board).
For the exact date and time of these major economic events, import the BlackBull Markets Economic Calendar to receive alerts directly in your email inbox.
Last week, the EU became the fourth Western economy to reduce its lending rate, announcing progress in tackling inflation. It lowered its main interest rate from a record high of 4% to 3.75%. Katherine Neiss, chief European economist at Prudential Investment Management, expressed “reasonable confidence” that the ECB would further cut rates over the summer or autumn, potentially bringing EU rates to 3.5% or lower by year-end. Investors will be closely analyzing the upcoming ECB speeches for any hints that support this prediction.
