EURUSD remains weak on concerns over a potential trade war between the Eurozone and the United States.
EURUSD extended its losing streak for the fourth trading day, touching a new year-to-date (YTD) low of 1.0592 during the European session on Wednesday, amid caution ahead of the US Consumer Price Index (CPI) data for October, which will be released at 13:30 GMT.
The CPI report expected to reveal that annual headline inflation has risen to 2.6% from 2.4% in September. The core CPI, which excludes volatile food and energy prices, increased steady by 3.3.
Investors are anticipating US inflation data and comments from a bevy of Fed officials.
The Inflation figures will shape market expectations for the Federal Reserve’s (Fed) monetary policy activity in December. The CME FedWatch tool predicts that the Fed will lower interest rates by 25 basis points (bps) to 4.25%-4.50% next month. However, the possibility has dropped to 62% from 70% a week earlier.
Market expectations for a Fed interest rate cut in December have recently waned as investors expect the US economy to improve and pricing pressures to rise under President-elect Donald Trump’s administration.
Market expectations for a Fed interest rate cut in December have recently waned as investors expect the US economy to improve and pricing pressures to rise under President-elect Donald Trump’s administration. products and increase company investment and labor demand, which ultimately leads to inflationary pressures and compels the Fed to adopt a more gradual rate-cut cycle.
Neel Kashkari, president of the Minneapolis Federal Reserve Bank, warned at a Yahoo! Finance event on Tuesday that “if inflation surprises to the upside before December, that might give us pause.” The monetary policy is “modestly restrictive right now,” Kashkari continued, and he anticipates that economic growth will continue.
Investors will also be watching remarks from a number of Fed officials who will provide new interest rate direction during Wednesday’s session.
Daily Market movers: EURUSD remains weak due to the Euro’s poor performance.
The major currency pair has also remained weak due to the Euro’s (EUR) poor performance over the past week. The Euro is down because
During his election campaign, Trump promised to increase import tariffs by 10% while lowering corporation taxes. This approach will raise domestic demand Excluding volatile food and energy prices, the CPI increased gradually by 3.3%.
Investors are anticipating US inflation data and comments from a bevy of Fed officials.
Market expectations for the Federal Reserve’s (Fed) anticipated monetary policy action in December will be influenced by the inflation figures. The CME FedWatch tool predicts that the Fed will lower interest rates by 25 basis points (bps) to 4.25% to 4.50% next month. But from 70% a week ago, the possibility has decreased to 62%. As investors anticipate that the US economy will improve and that pricing pressures would increase under President-elect Donald Trump’s administration, market expectations for a Fed interest rate cut in December have recently somewhat waned.
During his election campaign, Trump pledged to cut corporation taxes and increase import tariffs by 10%. This action will raise domestic demand for
