The EUR/USD failed to break the 1.0500 level yesterday and has fallen back to the 1.0350/1.0400 area. ING economists expect the pair to drop below 1.0300.
Few signs of a reduction in inflation
“Eurozone exposure to China is a key factor to watch for the Euroand could easily offset the benefits of lower energy prices.”
“The consensus is for German headline inflation to stabilize at 10.4% and eurozone numbers to slow slightly tomorrow. It’s hard to see this significantly altering the ECB’s narrative, but a figure above consensus could lead markets to seriously consider a 75 basis point interest rate hike in December (currently valued at 61 basis points).”
“With everything, ECB expectations have often not translated into a stronger Euro, and we continue to see the dollar call the shots in EUR/USD moves. Right now, we believe a drop below 1.0300 is more likely than a bounce towards 1.0500.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
