The Euro rate strengthened against all other major currencies in yesterday trading or in 21 of April 2022. The European Central Bank (ECB) officials have been busy delivering their "rate hike" signals.

It was occurred in the last one day or 24 hours where that was also raising the market sentiment towards the Single Currency. Now everyone is highlighting the updates of this topic. 

As the news was written at the beginning of the European session, the EUR/USD pair had broken out of its 2-year low. They climbed to the range of 1.0910s in the forex market. 

The ECB Vice President, Luis de Guindos, said to Bloomberg that the central bank should end its Asset Purchase Program (APP) in July. They have to raise interest rates within the same month or months later. 

The APP Program must be Ended in July

This view is a way more hawkish than the statements of ECB President Christine Lagarde which was stated after the meeting last week. It was still covering a plan to end the APP. 

It is especially in the third quarter where it is the same like a result of March meeting. His opinion was that the APP must be ended in July. So, how about the first rate hike decision?

It must be based on several considerations such as the projections, the different scenarios made, and then make a decision. From yesterday perspective, some results may be taken. 

There is a possibility to increase the Rate hike in July, September, or even after that. So, the possibilities are always there based on several situations which may be happened in the future. 

The Other Leaders Have the Same Opinions

Before, some bank leaders have been stating that they have the same thought. Those are from Germany, Belgium, and Latvia. The four of them were both attending the IMF meeting. 

It seems that they will be able to end the bond purchases, likely by the end of the second quarter. That was stayed by the Bundesbank President, Joachim Nagel, in an occasion. 

His statement so far adding his expectations for a rate hike as early as the third quarter. In the other side. The strengthening of the euro contributed to pushing the US Dollar Index or the DXY. 

That became down below the 100.00 threshold again. The greenback also experienced several corrections in various other major currency pairs after briefly appreciating rapidly at the beginning of the week. 

The BOJ offers to Purchase the JGB Obligation

Nevertheless, USD/JPY still held within the highest range in the last two decades in the range of 128.00. Yesterday, the BOJ or Central Bank of Japan declared their offer to buy the JGB obligation in an unlimited value. 

The aim is to maintain the obligation yield value under the level of 0.25 percent. Some Japan’s government officials have been saying their concerns about the negative impact of the Yen exchange rate. 

However, the BOJ action was a sign that most of the monetary authorities can give their tolerance for further yen exchange rate weakening.

The Oil Prices Slumped

Elsewhere, the World crude oil prices slumped by nearly 5 percent at the close of trading yesterday. When this news was written on Wednesday morning (20/April), Brent oil was in the range of $ 109.22 per barrel.

Mean while the WTI was traded at a range of $ 103.66 per barrel. The weakness in commodity prices was triggered by several concerns over the outlook for world oil demand. 

This is related to the cut in global economic growth projections by the International Monetary Fund (IMF) by almost one percent. The organization fears that high inflation will be a clear danger to many countries.