• 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

  • How Easy Is It For A Country To Change Its Time Zone?
  • Earth’s First Commercial Space Station Set To Launch In 2026
  • Black Hole Moon: Rogue Planets With Weird Signatures Could Be A Sign Of Advanced Alien Life
  • World’s Largest Ephemeral Lake Set To Turn Iconic Peachy Pink After Extreme Flooding
  • Stunning New JWST Observations Give Further Evidence That Dark Matter Is A Real Substance
  • How Big Is This Spider? Study Explains Why You Might Overestimate Their Size
  • Orcas Sometimes Give Humans Presents Of Food And We Don’t Know Why
  • New Approach For Interstellar Navigation Was Tested On A Spacecraft 9 Billion Kilometers Away
  • For Only The Second Recorded Time, Two Novae Are Visible With The Naked Eye At Once
  • Long-Lost Ancient Egyptian City Ruled By Cobra Goddess Discovered In Nile Delta
  • Much Maligned Norwegian Lemming Is One Of The Newest Mammal Species On Earth
  • Where Are The Real Geographical Centers Of All The Continents?
  • New Species Of South African Rain Frog Discovered, And It’s Absolutely Fuming About It
  • Love Cheese But Hate Nightmares? Bad News, It Looks Like The Two Really Are Related
  • Project Hail Mary Trailer First Look: What Would Happen If The Sun Got Darker?
  • Newly Discovered Cell Structure Might Hold Key To Understanding Devastating Genetic Disorders
  • What Is Kakeya’s Needle Problem, And Why Do We Want To Solve It?
  • “I Wasn’t Prepared For The Sheer Number Of Them”: Cave Of Mummified Never-Before-Seen Eyeless Invertebrates Amazes Scientists
  • Asteroid Day At 10: How The World Is More Prepared Than Ever To Face Celestial Threats
  • What Happened When A New Zealand Man Fell Butt-First Onto A Powerful Air Hose
  • 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