Euro Has Limited Scope to Benefit if Data Support ECB Rate Rise Bets
Dow Jones
Jul 29
1232 GMT - Upcoming eurozone second-quarter economic growth and inflation data could support the case for further interest-rate rises, although the euro's reaction might be limited, Union Bancaire Privee's Peter Kinsella says in a note. Data Thursday could show a return to growth of 0.2% quarter-on-quarter while data Friday could show inflation rose to 2.9% in July. Markets are likely to continue betting on one final 25 basis-point rate rise at the European Central Bank's September meeting. With a September move largely priced in, there is little room for the euro to benefit in the near term and the currency should continue to trade at the lower end of recent ranges, he says. The euro falls 0.1% to $1.1375.
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