In contrast, the well-known hawk Klaas Knot mentioned June as the most likely meeting with another two cuts favoured in September and December but also opened the door to cuts before June if the data justifies the need for one. Closer to the center of the spectrum, Villeroy and Wunsch communicated a cautious approach ought to be adopted and the governing council needs to be vigilant on inflation but ‘victory is within sight’ - Villeroy.that emerged between 1.0960 and 1.0942.
The RSI flirted with overbought territory as EUR/USD revealed a slowdown in bullish momentum and ultimately, gave way after the US PPI surprise. The pair now sees a test of the 50 and 200 SMA as the next level of support, around the 1.0831 level. Further bearish momentum brings the 38.2% Fibonacci retracement (corresponding with the 2023 decline) level into view. Next week, flash PMI data for March will provide greater insight into whether the growth story in Germany and Europe as a whole can find some sort of foothold but the outlook has been weak for some time no