EUR/USD cycles 1.10 after Powell pushes back on rate cut bets
Source Fxstreet
- EUR/USD is looking for a foothold at the 1.1000 region.
- Fed Chair Powell threw cold water on rising rate cut hopes.
- US tariffs increase odds of recession and inflationary spark, crimping Fed options.
EUR/USD churned near 1.1000 on Friday, sticking mostly flat as exhausted markets were greeted by an overly-cautious Federal Reserve (Fed) Chair Powell, who warned that inflation and recession risks thanks to tariffs will make it less, not more, likely that the Fed will cut rates sooner.
Later rather than sooner
Fed Chair Powell noted that alongside Friday’s US Nonfarm Payrolls (NFP) report, the US economy looks healthy overall. However, the impending inflationary impacts from US President Donald Trump’s tariffs this week cannot be ignored. While Fed officials have put significant effort into not saying it directly, stagflationary risks are on the rise thanks to the Trump administration.
More to come…
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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