The euro edged lower on Friday after European Central Bank officials sent mixed policy signals, while expectations of a 50 basis point rate hike from the Federal Reserve supported the U.S. dollar which briefly hit a new 25-month high.
ECB President Christine Lagarde struck a dovish tone by saying the central bank might need to cut its growth outlook a day after ECB dove Luis de Guindos joined some policymakers in calling for an early end of the bank’s asset buying scheme coupled with a rate rise in July.
Those mixed signals contrasted with Fed Chair Jerome Powell’s clear message on Thursday that a half-point interest rate increase “will be on the table” when U.S. central bank meets on May 3–4.
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