The CPI release hit market expectations of further aggressive rate hikes from the Bank of England, with the prospect of Britain's rates rising above 6%, from the current 5%, now likely off the table.
Euro edges higher; uncertainty over ECB’s September meeting
EUR/USD rose 0.2% to 1.1217, after German producer prices fell less than expected in June, adding to the uncertainty surrounding the European Central Bank’s rate outlook.
The European Central Bank is widely expected to increase interest rates once more when it meets next week, but policymakers have in recent days taken a more dovish tone about what will happen next.
Inflation in the eurozone has almost halved, down to 5.5% in June from a peak of 10.6% last October, leading 35 of 75 economists polled by Reuters to predict no more hikes, while 40 economists now see another 25 basis point rise in September.
EURUSD
SELL 1.1130 - 1.1140 💯💯
✅ TP1: 1.1100
✅ TP2: 1.0970
🛑 SL: 1.1200
Euro edges higher; uncertainty over ECB’s September meeting
EUR/USD rose 0.2% to 1.1217, after German producer prices fell less than expected in June, adding to the uncertainty surrounding the European Central Bank’s rate outlook.
The European Central Bank is widely expected to increase interest rates once more when it meets next week, but policymakers have in recent days taken a more dovish tone about what will happen next.
Inflation in the eurozone has almost halved, down to 5.5% in June from a peak of 10.6% last October, leading 35 of 75 economists polled by Reuters to predict no more hikes, while 40 economists now see another 25 basis point rise in September.
EURUSD
SELL 1.1130 - 1.1140 💯💯 ✅ TP1: 1.1100
✅ TP2: 1.0970
🛑 SL: 1.1200
