EURUSD continues recovering after updating the lows earlier.
The major currency pair is trying to keep the positive momentum. The current quote for the instrument is 1.0918.
One of the ECB policymakers said yesterday that the regulator might raise the benchmark interest rate as early as July. In his opinion, the ECB didn’t have to wait and see salary growth – the rate decision could be made under the current circumstances. A gradual approach doesn’t mean that the ECB’s response is too slow, it means that the regulator is weighing up all possible aspects.
As a rule, EURUSD likes such “hawkish” comments because the ECB’s official stance remains conservative and doesn’t imply any changes in the monetary policy in the nearest future. The European regulator wants to follow its own pace and the fact that it’s far behind the US Fed or other global regulators doesn’t make the EUR happy. However, there is hope.
Another factor that supported the European currency was the Industrial Production statistics, which added 0.7% m/m in February, the same as expected, after losing 0.7% m/m the month before. On YoY, the indicator gained 2.0% against the expected reading of 1.5%.
It’s a very good signal for the Euro Area economy but one can’t be sure that this tendency will continue.
Still, it is clearly seen that the Euro may rise if it is supported by some strong statistics.
Source: Roboforex
