EUR/USD slips below 1.1700 amid soft Eurozone CPI – BBH

FXStreet Insights Team FXStreet

EUR/USD is trading below 1.1700 as Eurozone December CPI data reinforces the ECB’s bias to keep rates on hold. With headline inflation at 2.0% y/y and core measures easing, the euro is expected to remain above 1.1500 in the coming months, while swaps price in steady policy, BBH FX analysts report.

December inflation supports ECB’s hold bias

"EUR/USD is trading on the defensive below 1.1700. The Eurozone preliminary December CPI supports the ECB’s on hold bias. In line with consensus, headline inflation dipped 0.1pts to 2.0% y/y, hitting the ECB’s medium-term target. Both core and services inflation also fell 0.1pts to 2.3% y/y (consensus: 2.4%) and 3.4% y/y, respectively."

"The ECB is in a good place to keep rates on hold at 2.00% for some time. That suggests EUR/USD will hold above 1.1500 over the next few months. The swaps curve price-in steady rates in the next twelve months and a 25bps rate increase to 2.25% in the next two years."

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 holds near Feb. 11 highs as bulls await breakout above 1.3660

The GBP/USD pair trades with a positive bias around mid-1.3600s at the start of a new week and remains well within striking distance of its highest level since February 11, touched on Friday. Moreover, the fundamental backdrop favors bullish traders and backs the case for an extension of a nearly one-month-old uptrend.

EUR/USD holds steady amid US debt strategy

EUR/USD remains stronger for the fourth successive trading day, hovering around 1.1680 during the Asian hours. The currency pair holds its ground as the US Dollar struggles under pressure from newly announced United States fiscal moves. The Treasury Department surprised financial markets by pledging to at least double its buybacks of longer-dated government debt in an attempt to rein in rising bond yields.

Gold keeps rallying toward $4,700, fresh three-month highs

Gold extends its last week's stellar performance into Asian trading on Monday, refreshing three-month highs beyond $4,600. The precious metal capitalizes on persistent US Dollar weakness, following the US Treasury's buyback plan amid fresh US-Canada trade tensions.

Here's what I learned trading meme coins

I’ve been trading cryptocurrencies for the past seven years, with meme coins becoming one of the most exciting and implacable parts of my experience. I love them because they represent internet culture and community sentiment, and, let’s be honest, extreme speculation. Newly launched meme coins were especially tempting: get in early enough, I thought, and a small bet could turn into a huge return.

The week ahead: Jackson Hole and Nvidia results to take focus away from Trump

We start the week with the focus squarely on the US. Rising Treasury yields, the Jackson Hole Symposium, inflation and GDP data, along with tariff risks, will dominate market action in the coming days.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.