The Euro in the U.S. trading session traded stronger, however concerns over the potential for an economic slowdown prevented a larger strengthening. On the other hand, the US dollar traded lower against six other major currencies as market players expected monetary tightening from the Fed.
According to ING analysts, the Euro currency is still in a dangerous position due to the risk of a protracted Russia-related conflict, followed by high energy prices and the Fed-ECB policy differences.
Unicredit analysts, meanwhile, view the Euro and US dollar movements as still playing at 1.10 with a better -than -expected PMI outlook across the European zone for March. However, it is not enough to drive more demand for the euro.
At the same time, German business sentiment declined in March due to worsening supply chain issues due to high petrol prices and a lack of catalysts.
The European Central Bank will reconsider plans to end its bond -buying stimulus program this summer if the eurozone economy continues to weaken as stated by ECB member Isabel Schnabel on Thursday.
The Euro traded 0.22% stronger against the US dollar at 1.1021.
The US dollar index, which measures the US dollar against major currencies, traded down 0.20% at 98.612. Market players are betting the Fed will raise its benchmark overnight interest rate by 190 basis points by the end of the year.
