Forex

Euro extends gains against dollar

2022-08-11 11:05:20 GMT (Economies.com)

Euro rose in European trade near two-month highs against dollar amid a lack of data from Europe and ahead of some important US data today.

 

As of 08:59 GMT, EUR/USD rose 0.41% to 1.0340, with a session-high at 1.0341, after rising 0.84% yesterday, testing July 5 highs.

 

Earlier US data showed consumer prices rose less than expected, paving the way for a 50 basis points Fed rate hike at the next meeting, instead of 75 basis points. 

 

Recent data showed US consumers expect one-year inflation at 6.2%, down from 6.8%, while three-year inflation to be down to 3.2% from 3.6%, as gasoline prices decline.

 

Five-year inflation forecasts fell as well to 2.3% from 2.8%, and we'll get a better idea about current inflation rates in the US today.

 

A reversal in yields curves between two-year and five-year US treasury yields paves the way for serious depression in the US later this year. 

 

From the US, producer prices are expected up 0.2% in July, while core prices are expected up 0.5% m/m. 

 

US unemployment claims are expected up 4 thousand to 264 thousand last week, while continuing claims fell 9 thousand to 1.407 million.

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