EUR/USD: Strong US inflation data to open the door for a test of 0.95 – Credit Suisse EURUSD CPI DollarIndex Fed Banks
“We can see core inflation print in line with what our economists expect taking this pricing somewhat closer to yet another 75 bps hike, and that leaves open the possibility of still more greenback strength. On the other hand, a ‘soft’ core number such as 0.2% MoM or below would arguably play well for another risk short squeeze and USD sell-off given that the market could respond to this by shifting in favour of only a 50 bps rate hike in November.
“In EUR/USD terms, we see strong US inflation data opening the door for a move to test 0.9500 on the way to our Q4 range low expectation of 0.9200, while soft data risk another move to test parity and our strategic ‘sell zone’ in the 1.0000-1.0200 range.” Information on these pages contains forward-looking statements that involve risks and uncertainties.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EUR/USD Forex Signal: Bearish Trend Has More Room to RunThe EUR/USD price has been in a strong downward trend as the US dollar strength continued.
Read more »
EUR/USD displays a rangebound structure around 0.9700 ahead of US InflationThe EUR/USD is displaying a lackluster performance in the early Tokyo session as investors are laser-focused on the US Consumer Price Index (CPI) data
Read more »
EUR/USD steadies near 0.9700 as German Inflation matches initial forecasts, US CPI eyedEUR/USD remains sidelined around 0.9700, recently picking up bids, even as Germany’s inflation numbers match upbeat forecasts during early Thursday. I
Read more »
Euro Forecast: EUR/JPY, EUR/USD Eye Bullish Reversals; EUR/GBP in Holding PatternBoth EUR/JPY and EUR/USD rates are working on daily bullish outside engulfing bars, a potential hint that a near-term bottom has been reached. Meanwhile, EUR/GBP rates are going nowhere fast, as both the GBP and the Euro have traded in tandem.
Read more »
EUR/USD holds to minimal gains above 0.9700, on risk aversion, after BoE's Bailey commentsEUR/USD holds to minimal gains above 0.9700, on risk aversion, after BoE's Bailey comments – by christianborjon EURUSD Majors Macroeconomics Fed ECB
Read more »
U.S. stocks open lower after hotter-than-expected producer price inflation dataU.S. stocks opened lower on Wednesday after erasing their premarket gains as data showed producer-price inflation accelerated more quickly than expected last...
Read more »