Euro trims losses after record high inflation in Europe

2022-07-01 13:23:36 GMT (Economies.com)
Euro trims losses after record high inflation in Europe

Euro trimmed its losses in European trade off two-week lows against  dollar following record-high inflation data in Europe, bolstering the case for a 0.5% rate hike at the next meeting. 

 

ECB President Christine Lagarde said this week the ECB is committed to controlling inflation even if that led to economic pain. 

 

Prices Today

 

EUR/USD fell 0.45% to 1.0433, with a session-high at 1.0485, while trimming the losses to 0.1% after the inflation data. 

 

Euro rose 0.4% on Thursday, the first profit in three days, off two-week lows at 1.0382. 

 

Record Inflation 

 

Europe's consumer prices rose to 8.6% in June, highest on record, above estimates of 8.5%, and above May's 8.1% reading. 

 

Core prices, including food and fuel, rose 3.7%, missing estimates of 3.9%, and below 3.8% in the previous reading. 

 

Lagarde

 

Christine Lagarde said the ECB is working on controlling runaway inflation no matter the consequences, however she doesn't expect the euro zone to fall into remission. 

 

European Rates Estimates 

 

Analysts are going as far as expecting the ECB to hike rates by 0.5% in July, even if a 0.25% hike is still the predominant bet here. 

 
 
 
  Symbol Last Change Chg.%
1.0201
0.0003
0.0314%
1.2077
-0.0040
0.3318%
20.617
0.252
1.237%
90.081
1.603
1.812%
96.06
-0.58
0.60%
1785.245
3.570
0.200%
 
 
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