 Euro surges broadly today after Eurozone inflation data showed larger than expected re-acceleration in May. While this increase doesn't shift the consensus that ECB will proceed with a rate cut next week, it significantly dampens any remaining expectations for a subsequent cut in July. Market speculation now leans towards the possibility of only two ECB rate cuts this year, rather than the previously anticipated three. Amidst these developments, Euro's rally is overshadowed by stronger performances from New Zealand Dollar and Australian Dollar, driven by a robust rebound in risk markets following the release of US. PCE inflation data. The data revealed that both headline and core inflation annual rates remained stable, aligning with forecasts. However, it was the slightly lower-than-expected monthly increase in core PCE that ignited a positive response from the markets, prompting a jump in US futures and a corresponding decline in the 10-year yield... |
