Euro Set for Best Week This Year With Fed, ECB Seen in Lockstep
- Traders largely price a Fed cut in June, similar to ECB Bets
- Coming US inflation print will show if EUR/USD can pass 1.10
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The euro is having its best week of the year against the dollar as hints of weakness in the US economy fuel bets the Federal Reserve and the European Central Bank will pivot to interest-rate cuts at around the same time.
A mixed jobs report on Friday prompted traders to ramp up wagers on earlier US rate cuts this year, dimming the dollar’s appeal and sending the euro to its highest versus the greenback since Jan. 12. The European common currency is now up more than 1% against the dollar this week.