Mario Centeno, a European Central Bank (ECB) Governing Council member, contended that a consistent increase in rates than necessary might backfire.
Centeno commented that higher interest rates would increase funding costs and reduce fiscal space. He further stated that budgetary considerations would not inhibit Normalization.
Following Centeno’s comment, the EUR/USD continues to drop. The currency pair even lost 0.8% on the day at 0.9655.
Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.
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