Scotiabank’s FX team notes EUR/USD is drifting toward 1.15 after a Fed‑driven rally, with euro area CPI broadly in line with expectations and French data briefly lifting the Euro. Rate expectations are stabilizing, with about 42 bps of tightening priced by December. Their fair‑value estimate sits in the mid‑1.15s, with a near‑term 1.1450–1.1550 range.
Euro consolidates Fed‑driven gains
“The EUR is soft, down 0.2% vs. the USD with a drift toward 1.15 and a slight fade of this week’s rally. The preliminary euro area’s CPI release for July has offered little in terms of movement for spot, with headline coming in as expected at 2.9% y/y and core…
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