EUR/USD: Market focus shifts to US CPI – Danske Bank
EUR/USD has edged slightly higher over the last 24 hours, with the EUR and European currencies broadly outperforming in the G10 space amid rising optimism that Germany's debt package will be approved, Danske Bank's FX analysts Kristoffer Kjær Lomholt and Filip Andersson report.
EUR and European currencies outperform in the G10 space
"Yesterday's US JOLTS job openings came in slightly above consensus at 7,740k (cons.: 7,600k) but saw negative revisions, leaving the data largely in line with expectations."
"Trump's announcement of an additional 25% tariff on all steel and aluminium imports from Canada, effective today, had remarkably little market impact - reinforcing the view that tariff announcements hold diminishing significance for markets."
"Today, the focus shifts to US CPI. We expect headline inflation at +0.2% m/m SA and core at +0.3% m/m SA - slightly below consensus for the headline print. However, this is not a high-conviction call, as the impact of tariffs remains difficult to quantify."
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FXStreet Insights Team
FXStreet
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