EUR/USD: US CPI unlikely to catapult the pair from its current range of 1.00-1.04 – Commerzbank
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In the view of economists at Commerzbank, the US inflation rate, due for publication today, will not cause the Fed to change its course. Therefore, the EUR/USD pair is set to remain within its current range of 1.00-1.04.
The Fed is likely to hike its key rate to 4% by year-end
“Even though today’s data might cause speculation on the market that inflation might have peaked I do not believe that this will be sufficient to change rate expectations massively.”
“The Fed is likely to hike its key rate to 4% by year-end according to our experts. The market is a little more cautious regarding the peak. As consensus too is expecting a slightly weaker CPI result for today (8.7%) this is unlikely to change and as a result, EUR/USD is likely to remain in its range.”
See – US CPI Preview: Forecasts from nine major banks, soaring inflation to ease off in July
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