© Reuters. An employee counts Euro bills at a money exchange office in central Cairo
LONDON (Reuters) – The European Central Bank’s shift back toward lower interest rates could push the euro below $1.10 and invert the euro money market curve, JP Morgan Asset Management’s foreign exchange head said on Wednesday.
If the ECB signals that it will lower its already negative deposit rate in the months ahead, “the risks are now that we break the bottom end of the $1.12-$1.18 (euro-dollar) range that has persisted over much of the past year and could even test below $1.10,” JPM AM’s Currency Chief Investment Officer Roger Hallam said.
He added that with the ECB now appearing to be more willing to embrace a tiered deposit rate system that the “euro money market curve can flatten and potentially invert.”
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Latest posts by investing.com (see all)
- Dollar steadies after upbeat U.S. data amid holiday-thin trade - April 19, 2019
- Forex – Dollar Rallies on Upbeat U.S. Economic Data - April 18, 2019
- New Report Says USMCA to Boost U.S. Economy 0.35% - April 18, 2019