Euro Stays Above $1.23 Level
The euro remains stable against the US dollar. The EUR/USD pair increased by 0.14% and is trading at 1.2354. Eurozone Retail PMI improved to 52.3. Tomorrow the Eurozone will publish revised GDP, and the US will release ADP nonfarm payrolls.
The EU intends to impose a duty of 25% on a number of consumer, agricultural and steel goods imported from the United States, in response to US actions. The European Commission should discuss proposals for a response at a meeting on Wednesday. The Commission is also considering the filing of a complaint against the United States in the World Trade Organization (WTO). Last week, Donald Trump said that the US will impose a duty of 25% on steel imports and 10% on aluminum imports for a "long period of time."
The next meeting of the European Central Bank (ECB) will take place on Thursday, March 8. Analysts believe that the ECB is unlikely to signal a change in policy at the March meeting, but it may also discuss abandoning the course for a relaxed monetary policy. The ECB wants to get more evidence of rising inflation. Eurozone CPI fell to 1.2% in February, down from 1.3% in January.
Inflation in the Eurozone is projected to average 1.5% this year and 1.6% next year, well below the ECB's target of 2%. Economists expect the central bank to raise its deposit rate by 15 basis points, to -0.25% in the second quarter of next year and will return it to the zero mark by the end of 2019.