ECB September Rate Hike Still Base Case, TD Securities Says
TD Securities strategists keep a September ECB rate increase as their baseline view after July HICP data showed limited evidence of strong second-round effects.
EURUSD
TD Securities strategists maintain that a European Central Bank rate increase in September remains their baseline scenario. The call follows the release of July’s Euro area HICP inflation figures.
Headline inflation rose to 2.9% year-on-year, with core at 2.5% and services at 3.3%. The analysts see only limited signs of meaningful second-round effects in the data.
The view suggests the ECB is still on track for further tightening at its next meeting, barring a sharp deterioration in the outlook.
Source: FXStreet Forex News