Fundamental News - EUR/USD

The euro depreciated to below the $1.08 level for the first time since May 2020 on uncertainty about the timing of interest rate hikes in the Euro Area. The ECB said that any adjustments to interest rates will take place some time after the end of the Governing Council’s net purchases under the APP and will be gradual and reinforced its expectation that net asset purchases under its asset purchase programme should be concluded in the third quarter. In Europe, investors are also concerned about the hit to economic growth from the war in Ukraine and surging commodity prices, as well as political uncertainty in France. President Emmanuel Macron clinch the top spot in the French presidential election but far-right leader Marine Le Pen’s close second-place finish sets up a competitive runoff election on April 24.