18 Jun 2014
US inflation prepares markets for the Fed - UBS
FXStreet (Córdoba) - The UBS analyst team commented that even though they don’t expect a very strong change of Fed’s communication, it should help EUR/USD keeping its slow downward path.
Key Quotes
“US inflation for June was a clear upside surprise with an increase of 0.3% in the core rate and 0.4% in the overall rate”.
“That certainly challenges the Fed, as already during the last months many market economists have had a first taste of how rising inflation might eventually demand more restrictive action by the Fed”.
“For Wednesday's press conference we do not expect a very strong change of communication. But the issue should help EUR/USD keeping its slow downward path”.
Key Quotes
“US inflation for June was a clear upside surprise with an increase of 0.3% in the core rate and 0.4% in the overall rate”.
“That certainly challenges the Fed, as already during the last months many market economists have had a first taste of how rising inflation might eventually demand more restrictive action by the Fed”.
“For Wednesday's press conference we do not expect a very strong change of communication. But the issue should help EUR/USD keeping its slow downward path”.