Euro: Soft US CPI could support gains against US Dollar – ING
Chris Turner at ING notes EUR/USD remains lacklustre despite better Eurozone data and upside surprises, as high European natural gas prices and Gulf tensions weigh on the Euro.
ING's Chris Turner suggests that a softer-than-expected US CPI figure could enable the Euro to surpass its recent peak of 1.1580 against the US Dollar. The Euro has shown limited movement despite stronger economic indicators in the Eurozone, as European natural gas prices remain elevated and tensions in the Gulf of Oman persist.
The latter factor is contributing to the Euro's weakness, keeping European gas prices above €60/MWh. Geopolitical uncertainties aside, a modest dip in US CPI could pave the way for EUR/USD to test the 1.1580 level, though additional data releases and the upcoming Jackson Hole symposium ahead of the Fed's mid-September policy decision may cap the upside.
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