EUR/USD steadies above 1.0200, US inflation awaited.

In the view of economists at Commerzbank, the US inflation rate, due for publication today, will not cause the Fed to change its course. Therefore, the EUR/USD pair is set to remain within its current range of 1.00-1.04.

The Fed is likely to hike its key rate to 4% by year-end.“Even though today’s data might cause speculation on the market that inflation might have peaked I do not believe that this will be sufficient to change rate expectations massively.”

“The Fed is likely to hike its key rate to 4% by year-end according to our experts. The market is a little more cautious regarding the peak. As consensus too is expecting a slightly weaker CPI result for today (8.7%) this is unlikely to change and as a result, EUR/USD is likely to remain in its range.”

EUR/USD is holding steady above 1.0200, extending consolidation in early Europe. Germany confirms final HICP at 8.5% YoY in July. The US dollar struggles to find demand amid sluggish Treasury yields ahead of the all-important inflation data. 


GBP/USD turns sideways below 1.2100 ahead of US Inflation

GBP/USD is juggling in a tight range below 1.2100, as investors refrain from placing bets on the pair ahead of the US Inflation data. The annualized US CPI is seen softening in July to 8.7%, although core figures are likely to quicken. 


Gold: Bear cross to challenge bulls ahead of US inflation

Gold price tested the $1,800 mark for the first time in over a month on Tuesday, having shrugged off resurgent demand for the US dollar even as the Treasury yields jumped across the curve. XAU/USD eyes a softer US CPI print for a big break above the $1,800 mark.

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