EURUSD has been declining for the second consecutive trading session; the risk attitude is not so great.
The major currency pair continues slowly falling on Wednesday. The current quote for the instrument is 1.0731.
The external background is slowly changing to cautious. In this situation, investors require “safe haven” assets, the “greenback” first of all, which are now getting more popular.
The Conference Board Consumer Confidence in the US showed 106.4 points in May, which is worse than the April reading, but better than expected.
The preliminary CPI report from the Euro Area showed 8.1% y/y in May after being 7.5% y/y in April and against the expected reading of 7.8% y/y. The Core CPI was 3.8% y/y against market expectations of 3.6% y/y. Most likely, the indicator rose because of the energy and fuel prices. Other products that are getting more expensive are food and services.
Inflation is a rather critical issue for the Euro Area, but the ECB is in no hurry to take serious measures to get it under control. Frankly speaking, the European regulator is too late with tightening its policy.
According to the current Governor of the National Bank of Slovakia Peter Kazimir, the regulator might raise the benchmark interest rate by 25 basis points after its July meeting and by 50 basis points in September. It would be great but still not enough to stabilise inflation.