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Euro traders cautious ahead of US inflation data
EUR/USD continues to be weak this morning as currency traders are all too aware of this afternoon’s US inflation figures. The euro has spent most of the month bobbing along just below the $1.34 level as it has had to absorb one piece of bad economic data after another from eurozone nations. More worryingly has been the fact that Germany has succumbed to the disappointing trend of its eurozone counterparts by posting poor data too.
The last week has seen equity markets stage a rally as expectation and hope have led to the belief that the European Central Bank will be forced into taking more action because of the eroding confidence and results.
The week could still offer plenty of twists and turns as we await tomorrow’s eurozone manufacturing and services data, then Friday’s speech from ECB president Mario Draghi on the international platform of Jackson Hole.