European Central Bank members Klaas Knot and Robert Holzmann signaled they would support tapering down the institution's emergency bond-buying scheme after preliminary inflation figures beat estimates. EUR/USD fades from 1.1845 high and needs weak US ADP jobs and/or ISM Manufacturing PMI figures to resume its advance, economists at Société Générale report.
Summer is over in Frankfurt
“It was still deemed premature to discuss recalibrating PEPP in June and July, but the scales have now tipped in favour, resolutely for the hawks, of a debate.
“ECB’s Knot sees ‘credible perspective for inflation to return to 2%’, favours maintaining optionality next week. Holzmann says slowdown of PEPP purchases ‘definitely a topic next week’.”
“The EUR/USD pair hit a wall at 1.1845 and must hope for soft ADP and/or manufacturing ISM for the mini-revival to carry on.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD remains capped below 1.1000, EU/ US inflation data eyed
EUR/USD is struggling below 1.1000, as the US Dollar clings to recovery gains in Asian trading hours on Thursday. Wednesday's softer-than-expected German and Spain inflation data weighed on the Euro. Investors await the Eurozone inflation data on Thursday for fresh impetus.
GBP/USD attracts some buyers near 1.2700, US PCE data looms
The GBP/USD pair attracts some buyers below the 1.2700 psychological mark during the early Asian session on Thursday. That being said, the softer US Dollar offers some support to the major pair. GBP/USD is trading near 1.2695, up 0.02% on the day.
Gold buyers turn cautious ahead of US inflation data, monthly close
Gold price is consolidating the previous pullback from six-month highs of $2,052 in Asian trading on Wednesday, treading water amid the end-of-the-month flows while awaiting the critical United States (US) Core Personal Consumption Expenditures (PCE) Price index data.
FTX token FTT jumps 8% as exchange wins approval to start selling $744 Million in Grayscale and Bitwise assets
FTX token (FTT) has jumped 8% following news that a US bankruptcy court of Delaware has allowed the now-defunct cryptocurrency exchange to move forward with a November 6 request.
Fed cuts on the table
If inflation continues to decline and the Fed refrains from cutting rates, the real policy rate will continue to rise. This situation could be precarious if the economy is losing momentum.