FOREX
The euro looks set to end the week with losses in relation to the US dollar, weighed down by concerns over the advance of the Delta variant and by the European Central Bank’s dovish pivot. The single currency incurred most of the loss yesterday, after the ECB’s President, Christine Lagarde, pledged to keep interest rates at the current low levels for even longer than previously expected. Despite the measured tone, which may have disappointed those expecting an even more pronounced dovish turn, a divergence between the stance of the ECB and those of other central banks, such as the Fed, is starting to appear and could lead to further euro losses.
Ricardo Evangelista – Senior analyst, ActivTrades
