EUR/USD

EUR/USD rebounds to around 1.1260 on Friday, gaining 0.16% on the day at the time of writing, after hitting an intraday low of 1.1221 earlier in the day.

Standard Chartered Global Research team discusses Euro area monetary policy, noting that core inflation has only edged up slightly since January and that higher yields pose downside risks to both growth and inflation. The authors judge that these factors reduce the chances of an October rate hike and expect the Governing Council to wait for new macroeconomic projections at the December policy meeting.

Brown Brothers Harriman’s Elias Haddad reports EUR/USD has slightly recovered after hitting fresh cyclical lows, with support at 1.1200 and 1.1111.

Brown Brothers Harriman’s (BBH) Elias Haddad warns France’s budget crisis is deepening and complicating Eurozone fiscal dynamics. A minority government’s deficit-reduction plan faces parliamentary hurdles, while the fiscal watchdog calls assumptions optimistic.

The Euro (EUR) is practically flat against the US Dollar (USD) on Friday, with the EUR/USD pair trading at the mid-1.1200s, still close to the 16-month low of 1.1210 hit on Thursday.

ING’s Chris Turner argues that the French debt sell-off has broken the narrative of ever-higher short-term rates and raised doubts about further European Central Bank (ECB) tightening.