EURO FUNDAMENTAL BACKDROP
Yesterday’s U.S. inflation beat so global markets reverse expectations around a less aggressive Federal Reserve bringing the EUR/USD currency pair all the way back below parity. The previous hawkish meeting by the European Central Bank (ECB) was not enough to deter yesterdays release (and rightly so) with the U.S. economy exhibiting strong fundamentals relative to the eurozone. The divergence between the two economies could be widening as Europe faces the threat of a serious energy crisis as the region heads into the winter months.
