EUR/USD: Pair holds near 1.18 as Euro inflation eyed – Danske Bank

FXStreet Insights Team FXStreet

Danske Bank’s Danske Research Team notes that EUR/USD is trading close to 1.18 as markets await key Euro area inflation data. The bank expects Euro area HICP inflation to edge up slightly to 1.73% year-on-year, with core inflation steady at 2.2%. Softer preliminary inflation prints from France, Spain and Germany could add downward pressure on Euro rates.

Euro inflation expectations support stability

"In the euro area, February's flash inflation data from France, Germany, and Spain will give important hints ahead of next week's euro area inflation release. We expect euro area HICP inflation to rise marginally from 1.69% y/y to 1.73% y/y, remaining at 1.7% y/y when rounded. Core inflation is expected to remain at 2.2% y/y."

"Core inflation is expected to remain at 2.2% y/y. Energy inflation is expected to rise due to lagged effects of January's energy price and higher fuel prices in February, which is the main reason we expect a small rise in the headline at the second decimal."

"Monthly momentum in services inflation will be crucial, given its notable weakness in January."

"EUR/USD continues to trade near the 1.18 level, while EUR/SEK remains below 10.70."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.