EUR/USD rebound looks to regain 1.1000 on softer US inflation, hawkish ECB talks – by anilpanchal7 EURUSD ECB Inflation Fed RiskAversion
US inflation softens to 4.9% YoY in April, matches market forecasts and prod Fed hawks.More clues of US inflation, ECB policymakers’ comments and US debt ceiling updates eyed for intraday moves.holds onto Wednesday’s recovery from the lowest levels in three weeks while picking up bids to 1.0985 during early Thursday morning in Asia. In doing so, the Euro pair cheers broadly softer US Dollar amid easy inflation numbers from the US, as well as the officials’ hawkish comments.
On Wednesday, the US inflation per the Consumer Price Index eased to 4.9% YoY for April versus market expectations of reprinting 5.0% inflation mark. The MoM figures, however, matched the upbeat 0.4% forecasts compared to 0.1% previous readings. Further, the CPI ex Food & Energy, known as the core CPI, matched 5.5% and 0.4% market consensus on a yearly and monthly basis respectively versus 5.6% and 0.4% priors in that order.
Considering the data, Analysts at the ANZ favored recently easing hawkish Fed bets while saying, “We think the combination of the April CPI and labor market report argue strongly against an early Fed pivot. Core monthly CPI has now been sticky at 0.4% m/m or a touch higher for the past five months and the 3m annualized pace is running in excess of 5.0%.
Elsewhere, US policymakers failed to seal the debt-ceiling deal in their first attempt but let the ball rolling by allowing office members to discuss the details and try again on Friday, which in turn prod the. “Detailed talks on raising the US government's $31.
Amid these plays, Wall Street benchmarks closed mixed while the US Treasury bond yields snapped a four-day uptrend. Further, theMoving on, EUR/USD traders may seek more clues about the US inflation and hence the monthly Producer Price Index for April, expected to ease to 2.4% YoY but the Core PPI may improve to 0.2% on MoM, will be important for intraday directions. Additionally, ECB talks and risk catalysts like US default woes and banking fallout fears can also direct the pair’s moves.
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