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Inflation concerns are nibbling at sentiment: Morning Brief

Consumer confidence is colliding with rising prices. On Friday, we learned the personal consumption expenditure (PCE) price index was up 3.6% year-over-year in April. The core PCE price index, which excludes food and energy, was up 3.1%, the biggest jump in this index since 1992. Similar to how they reacted to the hot April consumer price index (CPI) report, economists were quick to note this increase was largely due to temporary anomalies tied.

USD/CHF extends rebound to fresh weekly highs above 0 9020 ahead of US data

EUR/USD Forecast: Three reasons why the euro is set to resume its gains

Following 5/17/2021 6:06:12 AM GMT EUR/USD has been hovering above 1.21 and may rise on weaker inflation fears.  Europe s vaccination campaign continues at full force, underpinning the euro.  Monday s four-hour chart is showing momentum has turned to the upside.  New week, new highs? Perhaps not all euro bulls have begun the week with fresh energies, but the world s most popular currency pair has substantial reasons to rise.  1) Weaker US inflation fears The main upside driver of the dollar has been fear of rising US inflation, which would force the Federal Reserve to taper down its bond-buying scheme and later raise interest rates. The jump in the US Consumer Price Index (CPI) in April and leap in inflation expectations as seen in the University of Michigan s Consumer Sentiment Index figures for May. However, America is not alone.

EUR/USD: Three reasons why the euro is set to resume its gains

May 17, 2021 08:09 GMTForex News EUR/USD has been hovering above 1.21 and may rise on weaker inflation fears.  Europe’s vaccination campaign continues at full force, underpinning the euro.  Monday’s four-hour chart is showing momentum has turned to the upside.  New week, new highs? Perhaps not all euro bulls have begun the week with fresh energies, but the world’s most popular currency pair has substantial reasons to rise. 1) Weaker US inflation fears The main upside driver of the dollar has been fear of rising US inflation, which would force the Federal Reserve to taper down its bond-buying scheme and later raise interest rates. The jump in the US Consumer Price Index (CPI) in April and leap in inflation expectations as seen in the University of Michigan’s Consumer Consumer Sentiment Index figures for May. However, America is not alone.

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