EUR/USD: US CPI Likely A Trigger For Further EUR/USD Tactical Correction This Week – Barclays

Barclays Capital FX Strategy Research argues that in the absence of important euro area data, a pickup in US inflation this week should provide a trigger for further EUR/USD lower correction following a solid NFP report last Friday.

On Friday, we expect July headline CPI to have increased 0.2% m/m and 1.8% y/y, with core CPI rising 0.2% m/m and 1.7% y/y. While we see a number of transitory factors pushing CPI lower recently, we are also concerned by the continued decline in core goods prices,” Barclays projects.

“We continue to argue that markets have been too reluctant to price a hiking cycle for the Fed, pricing only a 40% probability of another hike this year. However, a growing positive output gap for the US economy will likely support a trend increase in policy rates, in our view.

Together with a patient ECB, we expect monetary policy divergence to remain an important element for a tactical retracement in EUR/USD,” Barclays argues. 

Source: Barclays Research

The article is published by one of the foremost sources of Forex trading information. Link to the original article above.

from eFXNews http://feedproxy.google.com/~r/Efxnews/~3/U0-OoHNnvpk/eurusd-us-cpi-likely-trigger-further-eurusd-tactical-correction-week-barclays

from Online Forex Trading Resource
View thesource article here

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s