EUR/USD extended into a two-day tumble as Greenback resurges.
Thin economic calendar on Tuesday leaves the way open for Fed fears.
Markets to look for signs of Fed weakness heading into midweek inflation print.
EUR/USD trimmed into the low side after a steep correction extended from Friday through Monday, dragging the pair down -1.57% peak-to-trough and the Fiber is once again testing bids near 1.0750.
EU Parliamentary elections hobbled the Euro heading into the new trading week as bumpy parliament shuffling poses a near-term risk for policymaking, weighing heavily on the Euro. A thin calendar on the EU side except for Final German Harmonized Index of Consumer Prices (HICP) figures early Wednesday leaves the Fiber exposed as broader markets pivot to face the upcoming Federal Reserve (Fed) rate call and an update to the Fed’s own dot plot summary of interest rate projections.
According to the CME’s FedWatch Tool, rate markets are pricing in a 51% chance that the Fed will hold on rates in September after rate cut hopes were knocked firmly back last week. With the Fed’s upcoming update to its “dot plot” of interest rate expectations on the docket this Wednesday, investors will be racing to see what Fed policymakers expect looking forward.
Wednesday also brings an update to US Consumer Price Index (CPI) inflation. Median market forecasts expect headline CPI inflation to cool to 0.1% MoM, with Core CPI Inflation expected to tick down to 3.5% from 3.6% YoY.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.