The Euro tumbles on high EU inflation as stagflation looms
Given the backdrop of mixed sentiment in the Euro area, as shown by October’s ZEW survey, hinting at a recession, the EUR/USD appreciated. Factors like overall US Dollar weakness, and a stable UK bond market, sparked a relief rally on risk-perceived assets. tightening, with rates about to hit the 4% threshold, as speculations of another big-size rate hike mounted.Aside from this, Minnesota Fed President Neil Kashkari said that inflation is too high while saying that the Federal funds rate needs to get to the 4.5-4.75% to tackle inflation. He added that the Fed would need to continue its restrictive policy if inflation remains high.The EUR/USD refrained from testing the top-trendline of a descending channel drawn from February 2022, around the 0.
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