FX Daily: EUR/USD starting to look cheap
USD: Looking for a shift in Fedspeak The post-CPI midsummer environment is understandably weighing on FX vols. We argued yesterday, that this could remain the norm for at least the next couple of weeks. At the same time, we retain a preference for dollar downside, as we still believe market conviction around further tightening by ...
FX Daily: EUR/USD starting to look cheap
The post-CPI midsummer environment is causing FX volatility concerns, but EUR/USD may be undervalued according to models. The EUR/USD short-term fair value is predicted to be between 1.160 and 1.1650, primarily due to a 10 basis point tightening in two-year swap rate spreads. The positive bias on EUR/USD suggests bulls may be content with strengthening technical support around 1.1500.
German economic data shows no significant changes in 2Q GDP, while Turkey's central bank raised its inflation forecast to 28%, bringing it closer to market expectations. In the Czech Republic, the Czech National Bank may reveal a more dovish discussion than markets expect in today's meeting minutes.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.