Strong Eurozone GDP Backs ECB September Hike, EUR/USD Consolidates
Elias Haddad of BBH notes EUR/USD is consolidating following a rally sparked by stronger-than-expected 0.4% Eurozone Q2 GDP growth, which supports the case for a European Central Bank rate hike in September.
EUR/USD is in consolidation mode after a recent upturn, according to Brown Brothers Harriman’s Elias Haddad. The pair rallied on the back of Eurozone second-quarter GDP data that exceeded forecasts.
The 0.4% quarter-on-quarter expansion bolsters expectations that the European Central Bank will deliver another rate increase at its September policy meeting.
The report adds to the narrative of a resilient euro area economy, contrasting with more mixed signals from the United States.
The currency pair's next move may hinge on upcoming inflation and activity data from both sides of the Atlantic.
Source: FXStreet Forex News