EUR/USD: BACK TO THE DOWNSIDE OF THE TRADE – DBS
EUR/USD appreciated by 0.2% to 1.1072, brushing aside the victory of Germany’s far-right Alternative for Germany (AfD) in the eastern state of Thuringia, but now it’s back below 1.1048 at 1.1035, DBS Senior FX Strategist Philip Wee notes.
ECB to join Fed in lowering rates.
“The Euro had depreciated in the last three days of the previous week, dropping to 1.1048 from 1.1184, amid expectations of a second interest rate cut at the European Central Bank meeting on September 12.”
“Following the Eurozone CPI inflation decline to 2.2% YoY in August, down from 2.6% in July, the OIS market has priced in a 94% chance of a 25 bps cut in the deposit facility rate to 3.50%.”
“Last week, ECB Chief Economist Philip Lane cautioned that the mission to return to the 2% target was ‘not yet secure’, signalling concerns with the market pricing in a neutral rate of 2.00-2.50% by mid-2025.”
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.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.