Waning bank stress, CPI discomfort fuel rate hike bets [Video]
|Global banks, including the US regional banks, rebounded sharply on Tuesday.
The US inflation data came in line with expectations on a yearly basis. Yet, the uptick in core inflation on a monthly basis to 0.5% - a five-month high, and the stickiness of services inflation above the 7% mark, revived the expectation of a 25bp hike from the Federal Reserve (Fed) at next week’s monetary policy meeting.
In Europe, the EURUSD is drilling above its 50-DMA, 1.0730, in the run up to Thursday’s European Central Bank (ECB) meeting, where the European policymakers could maintain the plan of a 50bp hike.
In the UK, investors can’t wait to hear what Jeremy Hunt will propose to boost growth.
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