- Analytics
- News and Tools
- Market News
- EUR/USD to move through 1.10 on US Core inflation below 5% – SocGen
EUR/USD to move through 1.10 on US Core inflation below 5% – SocGen
Kit Juckes, Chief Global FX Strategist at Société Générale, analyzes G10 FX outlook after US labour market data.
A hike by the BoC can keep USD/CAD downward momentum in place
The Dollar was softer ahead of the data than recent rate/yield moves might have suggested; that’s to say that the very close correlation between USD/JPY and 5-year yield differentials has broken down a bit, and the jobs data narrow that gap slightly. Likewise, EUR/USD, which has been tracking short-term rate differentials, was too high and is now too high by a smaller margin. Meh! We’re unlikely to break ranges with this.
Now the focus switches quickly to Wednesday’s CPI report, where the consensus call is for 5% core inflation. Below that, and maybe more people start wondering, not if the Fed passes up on a July hike, but if that could be the last one. And then, maybe EUR/USD does make a move through 1.10 and USD/JPY can head back towards 140.
The Canadian data posted strong jobs growth (2.4% YoY) but a significant slowdown in wage growth to 3.9%. That’s left the market split about Wednesday’s Bank of Canada meeting. A hike keeps USD/CAD downward momentum in place.
© 2000-2025. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
