EURUSD rallies on a soft US dollar and speculations of the ECB hiking 50 bps – by christianborjon EURUSD Majors Macroeconomics Technical Analysis
Earlier in the European session, Eurostat reported the EU HICP for June, unveiling that inflation rose by 8.6% YoY, aligned with estimates and with May’s reading. The core figures showed an expansion of 3.7% YoY, signaling that for two consecutive months, HICP has stabilized. However, EURUSD traders should be aware that in the US, something similar happened before seeing a resumption of US inflation to the upside.
With expectations of the ECB hiking 50 bps and the Fed to move at least by 75 bps, differentials would tighten further, to 0.00% vs. 2.50% , meaning that the greenback would keep the upper hand. Nevertheless, sources leaking that the ECB might go 50 bps might open the door for further gains on the EURUSD.EURUSD buyers have stepped in the major, which rallied above the 1.0250 mark for the first time since July 6.
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