In mid February, European Central Bank President Lagarde reiterated the agency's plan to raise interest rates by half a percentage point in the face of improved economic prospects in the eurozone. This will support the short-term upward momentum of the euro.

Inflation in the eurozone is difficult to quickly suppress as energy prices rise. Especially the low level of periodic storage of natural gas is from April to May. Interest rate hikes have triggered a rapid increase in the number of corporate liquidations in the eurozone. Compared to the second quarter of 2022, the measured corporate liquidation index in the eurozone has increased from 75 to 115, which will limit the pace of interest rate hikes by the European Central Bank.

The weekly Stochastic oversold of the euro against the US dollar is expected, with the euro having the opportunity to traverse and even test the resistance zone of 1.09 to 1.1. After Stochastic's oversold correction, there is a chance for the euro to fall again. BY DUKASCOPY BANK SA