ECB Rate Decision Could Impact Euro, TD Securities Strategists Say

TD Securities strategists have indicated that the euro may decline if the European Central Bank (ECB) decides to keep interest rates unchanged on Thursday and fails to commit to a rate hike in June as anticipated by the market. According to Jin10, ECB President Christine Lagarde is expected to emphasize uncertainties and the risks of rising inflation and slowing growth. She may suggest that more data is needed to assess the medium-term impact of rising energy prices on inflation. The strategists noted that if questioned about the possibility of a rate hike in June, Lagarde might reiterate that the ECB is prepared to act, provided the data supports such a move.