JPMorgan: ECB Rate Decision Has Limited Impact on the Euro

According to Jin10, JPMorgan Private Bank macro investment strategist Patrick Ernst said the European Central Bank’s expected 25-basis-point rate hike did not give the euro-dollar exchange rate much new information that the market had not already priced in. Ernst said the dollar may still remain dominant for now, and added that a hot U.S. CPI reading before next week’s Federal Reserve rate decision could weaken the euro’s recent upward momentum against the dollar. U.S. August CPI data will be released on Friday, and the euro later fell 0.2% to $1.1607 after U.S. August headline PPI came in slightly above expectations.