TD Securities: US CPI Will Dominate EUR/USD Trend

Jinse Finance reported that TD Securities strategists stated in a report that the US CPI inflation data is more likely to trigger a reaction in the EUR/USD exchange rate, rather than the European Central Bank's interest rate decision. The strategists noted that the European Central Bank is expected to keep the deposit rate unchanged at 2.0%, which is in line with general market expectations. The central bank may indicate that uncertainty has decreased after a trade agreement between the US and Europe, but will still emphasize that future decisions will be made on a meeting-by-meeting, data-dependent basis. TD Securities strategists said: "The US CPI will be a bigger driver for the foreign exchange market. We remain cautious about the US dollar strengthening due to a stronger report and signs of inflation pass-through." (Golden Ten Data)