The US Dollar has pulled back after last week’s jump to fresh 19-year-highs. As I had written last Thursday, this was taking on more of a EUR/USD-driven theme. After the major pair ran into parity last week, buyers were unable to stem the declines and last Thursday morning saw a troubling break-below the big figure in EUR/USD.
This week saw European inflation print over 8% again (8.6%, to be exact) and core inflation printed at the same 3.7% as last month. As of now, the ECB is still sitting on negative rates, which doesn’t make a lot of sense given the levels of inflation being seen in the Euro-zone.
