The US dollar faces reduced upside risk following a cooler US CPI report, while the Euro remains sensitive to upcoming ECB policy guidance on potential back-to-back rate hikes.
Key Takeaways
- 1.Softer US core inflation data for May has eased pressure on the Fed and dampened upside risks for the US dollar.
- 2.Market focus shifts to the ECB policy update, with a 25bps hike fully priced in and uncertainty surrounding the potential for back-to-back hikes in June and July.
Table of Contents
- USD: Softer US core inflation helps to dampen upside risks for US dollar
- EUR: Will the ECB indicate it could deliver back-to-back rate hikes?
- KEY RELEASES AND EVENTS
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Authors
Lee Hardman
Securities
EURUSDUS 2-Year Treasury
Themes
Central Bank PolicyInflation DynamicsGeopolitical Risk
Regions
EuropeUnited StatesIran