• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Inflation shock and ECB hawks keep euro near 1-month high

September 2, 2021 by David Barret Leave a Comment

September 2, 2021

By Sujata Rao

LONDON (Reuters) -The euro held near a one-month high versus the dollar on Thursday and a six-week peak against the pound, supported by hawkish comments from ECB policymakers after data showed inflation at a decade high and on signs the Fed is not hurrying to tighten policy.

The dollar has been on the defensive over the past couple of weeks as doubts have crept in about when the Federal Reserve will start unwinding its stimulus. Fed chair Jerome Powell said last Friday the jobs recovery would determine the timing of asset purchase tapering.

Dovish comments from Powell and other Fed policymakers in addition to data misses have seen the greenback index lose around 1.4% versus a basket of currencies since hitting nine-month highs on Aug. 20.

The index was marginally weaker at 92.452 by 0945 GMT, not far off a four-week low of 92.376 touched the previous session after soft ADP payrolls figures and ISM manufacturing surveys.

The euro has in contrast witnessed supportive data flow, including strong manufacturing growth and inflationary pressure from supply-chain snarls.

Fresh figures on Thursday showed factory gate prices in the 19-country euro bloc rose 2.3% month-on-month for a 12.1% year-on-year surge, well above what was forecast. That follows Wednesday data showing inflation rose 3% year on year in August, the highest in a decade.

It was also buoyed on Wednesday by comments from a slew of European Central Bank hawks including Austria’s Robert Holzman and Bundesbank boss Jens Weidman.

However, the euro did not advance further and stayed off one-month highs of $1.1857. It also kept off the one-month high of 130.44 yen touched on Wednesday and the six-week peak against the pound of 86.02 pence.

Investors say it could struggle to make headway, possibly because ECB guidance has suggested asset purchases will continue until rate hikes are necessary.

“Leveraged funds were short euro-dollar so since Jackson Hole we have seen some of those shorts being covered, but the move doesn’t look violent and there are still decent numbers of people looking to go short again,” said Stephen Gallo, European Head of FX strategy for BMO Capital Markets.

“As long as the dollar doesn’t have a reason to weaken, I don’t think the euro on its own will break out significantly to the top side.”

That reason could come on Friday when U/S. non-farm payrolls data is due. A Reuters poll forecasts 728,000 jobs were added in August. The numbers will follow a disappointing ADP jobs reading on Wednesday that showed 374,000 hirings last month against a forecast for 613,000.

“Given the dollar flow, one could argue that the market is now positioned for NFPs to come in modestly below expectations – perhaps in the 550,000-600,000 range,” said Chris Weston, head of research at broker Pepperstone in Melbourne.

Moves across currency markets were subdued ahead of Friday’s jobs data and figures later on Thursday on U.S. weekly jobless benefits claims.

The yen was unchanged at 110 per dollar, and the Australian dollar was at a one-month peak of $0.7465.

The New Zealand dollar too hit a one-month high of $0.7090, as rate hike bets pushed bond yields to two-month peaks [NZD/].

(Reporting by Sujata Rao; Additional reporting by Tom Westbrook in Singapore; Editing by Edwina Gibbs and Hugh Lawson)

Source Link Inflation shock and ECB hawks keep euro near 1-month high

David Barret
David Barret

Related posts:

  1. Number of people with dementia set to jump 40% to 78 million by 2030 -WHO
  2. UK card spending slips to 93% of pre-COVID level – ONS
  3. iPhone 13 release date, leaks, price and news
  4. Apple offers small concession in easing App Store rules for Netflix, others

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • World’s Only Population Of Black Tigers Lives In A Single Reserve In India
  • Should We Worry About The Latest COVID-19 Variants?
  • Record-Breaking Rogue Planet Seen Growing At A Rate Of 6 Billion Tonnes Per Second
  • The Universe May End With A Big Crunch – And There’s Just 20 Billion Years To Go
  • Interstellar Comet 3I/ATLAS Found To Have “Extreme Abundance Ratio” Of Iron And Nickel
  • The Fundamental Forces Of The Universe Are Getting Weaker, New Paper Suggests
  • At Least 541 Million Years Old, These Might Be The First Animals To Evolve On Planet Earth
  • We May Finally Know Why Women Live Longer Than Men
  • Jane Goodall, Pioneering Scientist Who First Discovered Tool-Use In Chimps, Dies At 91
  • Trump Orders Release Of Classified Files On The Mysterious Disappearance Of Amelia Earhart
  • Proof Of Complex Organic Molecules In Enceladus’s Ocean: “You Have Everything You Need To Form Life”
  • Long COVID Risk In Kids Found To Double After Their Second COVID-19 Infection
  • “One Of The Most Extreme Environmental Events On Earth” Unfolded 6.2 Million Years Ago
  • GW190521 May Be Evidence Of Another Universe “Connected To Our Universe Through A Throat”, Scientists Claim
  • Physicists Find A Way Around Heisenberg’s Uncertainty Principle, One Of The Most Frustrating Concepts In Physics
  • AI-Generated Genomes Used To Produce Functional, Bacteria-Killing Viruses In World First
  • Meet The Pocket Sharks: They’re Rare, They’re Tiny, And They’re Something Of A Mystery
  • The Great Comet Of 1997 Was Visible To The Naked Eye For A Record 569 Days
  • In The Soil Of Easter Island, Scientists Found An Anti-Aging Drug That Changed Medicine Forever
  • Interstellar Comet 3I/ATLAS Shows “Extreme Negative Polarization”. What Does That Mean?
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version