AtlantisFX | The euro fell slightly on Wednesday. In the morning, the common currency cost $ 1,1357. The day before, the euro had risen to a three-month high at $ 1.14. The European Central Bank (ECB) had set the reference rate at $ 1.388 on Tuesday afternoon.
The euro was burdened by a stronger US dollar. The market referred to remarks from the ranks of the US Federal Reserve. During the night on Wednesday, James Bullard, the regional central bank chief in St. Louis, reaffirmed the possibility of an early rate cut. A large interest rate increase of half a percentage point would be excessive in his view. In recent weeks, high expectations have arisen in the financial markets for an easing of monetary policy in the USA. A reduction of 0.25 percentage points at the upcoming central bank meeting in July is firmly expected in the markets. Even a major rate hike is not completely discounted, with Bullard's comments dampening such expectations. The dollar profited from it.