The European Central Bank took a less hawkish approach to its interest rate hike cycle at its March meeting compared to its February meeting.
As a result, interest rate markets now expect the European Central Bank to not raise interest rates again.
Due to the hawkish policies of Europe, there will be a strong focus on future growth and inflation data. Because it will form the market’s expectations about whether the interest rate increase will be done or whether it can be implemented.
This means that the focus for the euro this week will be on Friday’s Manufacturing and Services PMI. But due to the inverse correlation of the euro with the US dollar index, the Fed’s policy decision on Wednesday could clear the way for euro traders.
