EUR: Inflation pickup to keep doves quiet – ING
|Eurozone inflation accelerated yesterday, with headline CPI hitting 2.2% while core stayed at 2.3% for the fifth consecutive month, ING's FX analyst Francesco Pesole notes.
Risks remain tilted to the upside for EUR/USD
"The figures were fully in line with market expectations and largely driven by energy prices. That said, data is vindicating the ECB’s cautious stance, and could keep dovish voices in the governing council quiet. A quick scan of recent ECB member comments shows little to no dissent anyway."
"Yesterday’s price action in EUR/USD suggests the rally is looking a bit tired without any substantial catalysts at the moment. As discussed above, the yen is a preferred channel to EUR for US shutdown risks, and the technical picture isn’t as supportive for the common currency in the near term."
"Risks remain tilted to the upside for EUR/USD, given that downside risks are more concentrated on the US side, but a break above 1.180 may require new data inputs."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.