In the Asian session on Monday (April 10), the EUR/USD rose to 1.0905, an increase of 0.01%. ECB Governing Council Makhlouf said policy rates need to remain at restrictive levels in order to curb demand.
Holzman said another 50 basis point increase in rates was “still possible” provided the turmoil hitting the global banking system did not worsen. The head of the European Banking Authority said the European Union’s banking regulator was monitoring unrealized losses on bank bond portfolios, but this was not as worrisome as the situation in the United States. The European Central Bank announced the results of its monthly consumer expectations survey. Consumers expect an inflation rate of 2.4% in the next three years, up from 2.5% in January; consumers expect an inflation rate of 4.6% in the next 12 months.
