EUR/USD: Pair steady as markets eye US CPI – Danske Bank
|Danske Research Team observes that EUR/USD is little changed below 1.1650, with 2‑year Bund and US Treasury yields slightly lower. The bank forecasts US February CPI at 2.5% year‑on‑year for both headline and core, marginally above consensus, but does not expect this to materially alter current market pricing for the Dollar or rates.
Cross holds below 1.1650 pre CPI
"EUR/USD remains about unchanged below 1.1650 from yesterday's open. 2Y Bund yields declined about 6bp and 2Y US Treasury yields pulled back 2bp over yesterday's trading session. "
"Today's most important data release will be the US February CPI. US gasoline prices were on the rise already before the war in Iran erupted, and we expect energy inflation to lift headline CPI by +0.3% m/m SA (2.5% y/y). Core inflation will likely remain more modest at +0.2% m/m SA (2.5% y/y) due to low housing contribution."
"We will follow comments from ECB executive board member Schnabel, who is scheduled to speak today. As the silent period ahead of the March meeting begins tomorrow, both Guindos and Schnabel have the chance to offer key insights today."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
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