Euro firms as Federal cut expectations pull traders’ interest out of dollar

SINGAPORE- The euro stabilized against the greenback on Tuesday. The session placed euro close enough to its peak in two months on hopes that the monetary easing in the United States will intensively run compared to other measures implemented in Europe.  

The euro traded $1.1185 in overnight session, the highest performance since early part of January while the beaten dollar plummeted down to a six weeks of underperformance against other currencies.

U.S. Federal Reserve Chairman Jerome Powell and European Central Bank (ECB) President Christine Legarde disclosed subtle intentions in previous days. However, ECB’s current refinancing rate of 0% and the Fed’s funds shifting between 1.5% and 1.75%, Fed has bigger margins to maneuver. This will also rally investors to unwind carry trades accordingly.