Title: Euro Halts 5-Week Dollar Slide After Warsh Remarks
Content: The euro gained 0.3% to $1.1257, snapping a five-week losing streak against the dollar following Federal Reserve Chairman Kevin Warsh's comments. Warsh's remarks were interpreted as signaling the Fed may keep rates on hold, halting dollar gains and lifting the euro for a second day with a 0.5% weekly advance. All Group-of-10 currencies except the Japanese yen rose versus the greenback on Friday.
Traders cited positioning as the key driver, with long dollar positions built up recently and disappointment over lack of follow-through strength after stronger US inflation data. While options market sentiment improved for the euro, concerns about France's budget deficit continue to weigh, with traders remaining bearish across the curve.
Strategists note rate expectations remain key, with the ECB likely to keep hiking rates priced out for now. The euro is expected to trade in a 1.10-1.15 range, though Francesco Pesole of ING retains a bullish view for 2027, arguing the current setback is unlikely to mark a lasting structural downturn.
المصدر: Bloomberg Markets · لخّصه HeadlinesBriefing