Upcoming U.S. Inflation Data Could Lift Euro vs Dollar
Dow Jones
Aug 10
0737 GMT - The euro could rise above $1.16 if Wednesday's U.S. inflation data are lower than expected, ING's Francesco Pesole says in a note. There is still ample room for markets to scale back Federal Reserve interest-rate rise expectations after Friday's weak U.S. nonfarm payrolls report, he says. In contrast, the European Central Bank has already given markets a quasi-commitment to another rate rise in September, he says. "Short-term rate differentials have continued to grow as the main driver for euro-dollar, meaning sensitivity to the Fed story should remain very elevated." The euro trades flat at $1.1554 after reaching a seven-week high of $1.1580 Friday, LSEG data show.
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