EUR/USD RECLAIMS 1.0900 AS GREENBACK PLUMMETS ON RISING FED RATE CUT HOPES
- EUR/USD climbed into a five-week peak amid broad-market Greenback selling.
- US PPI inflation rose faster than expected in June, but investors pin hopes on rate cuts.
- ECB rate cut looms ahead next week, US Retail Sales due next Tuesday.
Broad-market hopes for an accelerated pace of rate cuts from the US Federal Reserve (Fed) reached a fever pitch on Friday despite a notable upswing in US Producer Price Index (PPI) wholesale inflation. The Fiber extended into a third straight week of gains as investor risk appetite gets pinned to the ceiling. June’s core Producer Price Index (PPI) for wholesale inflation in the US rose to 3.0% YoY, surpassing the expected 2.5%. The previous period's figure was adjusted upward to 2.6% from the initial 2.3%. Despite the notable increase in producer-level inflation, market focus has shifted to the earlier decrease in Consumer Price Index (CPI) inflation, raising expectations for a rate cut.
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