Euro is under pressure versus the US Dollar.
The Euro (EUR) is under selling pressure against the US Dollar (USD), with EURUSD falling to 1.0550 on Wednesday.
The USD Index (DXY) appears to be bid at the low 106.00s.
The US dollar remains around the low 106.00s when measured by the USD Index (DXY), despite equally erratic price activity in global markets and a generally cautious approach in light of rising geopolitical worries.
Keeping the focus on the center With a focus on monetary policy, investors predict that the Federal Reserve (Fed) will maintain its posture of not raising interest rates for the rest of the year. Meanwhile, financial market investors are considering the likelihood of the European Central Bank (ECB) stopping policy changes, despite inflation levels beyond the bank’s objective and growing fears over the region’s economic slump or stagflation.
On the home front, the final Inflation Rate for September in the broader Eurozone saw the CPI grow 4.3% YoY and the Core CPI (consumer prices excluding food and energy expenses) rise 4.5% YoY.
Euro investors will also be paying attention to statements by FOMC Governor Christopher Waller (permanent voter, centrist) and New York Fed President John Williams (permanent voter, centrist). FOMC Governor Michelle Bowman (hawk) and Philadelphia Fed President Patrick Harker (hawk).
Daily market movers: The euro stays weak around the mid-1.0500s.
The EUR is losing ground versus the USD.
US and German yields have finally recovered from their early losses.
Markets are still focused on the Fed’s tightening-for-a-longer-period approach.
Investors believe the ECB will suspend its tightening cycle until the third quarter of 2024.
The Middle East problem might worsen before it improves.
Chinese data surprised on the positive side.
In September, the UK CPI climbed 6.7% year on year, somewhat higher than expected.