This Happened To Euro & USD After ECB Meeting & US Inflation Data - Kakiforex.com - Financial Market Media No. 1 in the World This Happened To Euro & USD After ECB Meeting & US Inflation Data This Happened To Euro & USD After ECB Meeting & US Inflation Data
InstaForex

June 11, 2021

This Happened To Euro & USD After ECB Meeting & US Inflation Data

 The US dollar was seen to continue to move weakly in the market after the US inflation data which was the main focus this week was published in the New York session yesterday following the US NFP jobs report last week.


The US consumer price index, which measures inflation, declined slightly to 0.6% from the previous reading of 0.8%, but did not meet the expected decline of 0.4%.


Thus, the inflation reading is still not enough to change the policy stance by the Federal Reserve (Fed) which views the increase in consumer prices is only temporary.


In addition, the US global stock market showed an increase while the US 10 -year treasury yield plunged to 1.40% which added another factor to the depreciation of the US dollar in the market.


Meanwhile, the focus was also on the European central bank's policy meeting before investors' focus shifted to the issuance of US inflation data.



The European Central Bank (ECB) is expected to maintain interest rates unchanged at 0.0% and also maintain its current policy.


The ECB reiterates that they will continue to support the economy with different programs.


ECB President Christine Lagarde's statement that followed was seen delivered in a mixed tone. He said price pressures remained, and it was too early to discuss measures to reduce asset purchases (tapering).


At the same time, the ECB has raised its economic growth forecast to 4.6% this year and 4.7% for next year.


The Euro has also shown a decline following the market reaction to the outcome of the ECB meeting.