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EUR/USD: Recovery prospects face central bank pushback – DBS

DBS Group Research’s Philip Wee notes that EUR/USD’s recent advance stalled after repeated failures to break 1.18, as the European Central Bank (ECB) pushes back against expectations for an April rate hike. He highlights that Eurozone growth forecasts have been trimmed but still compare favourably to ECB staff projections, and argues it is premature to call an end to the Euro’s recovery against the Dollar.

Euro rally stalls below 1.18 barrier

"EUR/USD’s rally stalled after failing to break above 1.18 for three consecutive sessions."

"The European Central Bank is pushing back against market expectations for a rate hike at the April 29 governing council meeting."

"While the IMF trimmed its 2026 Eurozone growth forecast to 1.1% from 1.3%, this still compares favourably to the ECB’s staff projections."

"It is still premature to call an end to the EUR and GBP’s recovery."

"In contrast to the ECB and BOE, the Fed is not pushing back against rate hikes and is defending its decision against providing strong guidance amid the increased geopolitical uncertainties."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

India FX Reserves, USD increased to $700.95B in April 6 from previous $697.12B

India FX Reserves, USD increased to $700.95B in April 6 from previous $697.12B
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USD/CHF Price Forecast: Bearish Flag formation warrants more downside below 0.7790

The USD/CHF pair trades 0.15% lower at around 0.7825 during the European trading session on Friday. The Swiss Franc pair faces selling pressure as optimism towards a permanent ceasefire between the United States (US) and Iran has diminished the appeal of safe-haven assets.
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