Euro holds near $1.165 as investors await Warsh at Jackson Hole
Euro was little changed at $1.165 as investors weighed data and awaited Federal Reserve Chair Kevin Warsh’s Jackson Hole speech. France and Spain inflation prints support expectations for an ECB September rate hike.
The euro was little changed at $1.165 as investors digested economic data and awaited Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole symposium for clues on the US rate outlook.
Meanwhile, inflation data from France and Spain showed renewed price pressures, strengthening expectations of an ECB rate hike in September.
EU-harmonized inflation rose to 2.7% in France, a three-month high, while Spain’s climbed to 4.5%, its highest since 2023 and more than double the ECB’s 2% target.
Markets now price the ECB deposit rate at 2.80% by March next year, up from 2.25% currently, and around 2.90% by late 2027, implying roughly a 60% chance of a hike to 3%.
Recent ECB minutes pointed to another likely increase, while