Euro: Benefits from US Dollar weakness – DBS

DBS Group Research says EUR/USD has rallied toward 1.17 as the euro benefits from broad US dollar कमजोरी. The move is supported by Eurozone July CPI data that matched expectations, with headline inflation at 2.9% y/y and core inflation at 2.5% y/y, reinforcing confidence that the European Central Bank will deliver a rate hike in September. Markets are pricing roughly 26 basis points of tightening with an implied probability above 90%. In contrast, the Fed’s next move remains uncertain after softer US data, adding to dollar pressure and supporting the euro near recent highs.