The London market outlook anticipates EUR/USD coming under pressure from rising US long-term interest rates, with growing caution over developments in European indicators, including those from Germany and France. Attention is also expected to focus on the release of German CPI.
The London FX market outlook anticipates rising US long-term interest rates weighing on EUR/USD. US interest-rate developments are viewed as influencing the relative performance of European currencies.
The focus among the key factors is expected to be on developments in European price indicators, led by Germany's CPI, although the article does not specify any timing or figures. Investors are expected to focus on the market reaction to upcoming data releases.
This outlook is based on the view that the combination of US long-term interest-rate trends and European inflation indicators will determine market movements. Market participants believe they will need to closely monitor changes in the US-European interest-rate differential when German CPI is released.