Euro: Benefits from US Dollar weakness – DBS
Chang Wei Liang at DBS Group Research highlights that EUR/USD has rallied toward 1.17, with the Euro the main beneficiary of Dollar softness. July Eurozone CPI matched expectations for both headline and core, reinforcing market conviction in a European Central Bank rate hike in September, with around 26 basis points priced and a very high implied probability.
Eurozone inflation supports ecb pricing
"EUR/USD rallied towards 1.17, with EUR being the prime beneficiary of USD weakness."
"Eurozone’s July CPI came in line with expectations yesterday, with both headline and core inflation matched consensus of 2.9% y/y and 2.5% y/y respectively."
"This has entrenched expectations of an ECB rate hike for Sep, with markets pricing in a 26bps hike with over 90% probability."
"On the other hand, the Fed’s next rate move is less clear given recent economic data softness, and upcoming mid-term elections in November."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
High yields boost buying, Japan's two-year government bond auction passes smoothly
Driven by attractive yields, capital has been flowing in, resulting in Wednesday's two-year Japanese government bond auction seeing demand stronger than the 12-month average.
"The Big Short" Burry’s star pupil warns: South Korean stock market appears to be a "capitalist paradise," but in reality hides a "value trap"
There are hidden traps behind low-priced Korean stocks: most of their value is often inaccessible to minority shareholders.
The $1,999 iPhone drives foldable screen market expansion! Counterpoint estimates that Apple (AAPL.US) iPhone Duo will sell 6 million units this year.
The market research firm Counterpoint Research stated that Apple is expected to sell about 6 million units of the iPhone Duo this year. This is the industry's first sales forecast for this new foldable device.
Omar Kanji joins Brevan Howard as Head of Digital Asset Business Growth Investment.
Crypto prices
More
