TD Securities: US CPI will dominate the Euro/USD trend

Jin10 data reported on September 11, that TD Securities strategists indicated in a report that the U.S. CPI inflation data is more likely to trigger a reaction in the EUR/USD exchange rate rather than the European Central Bank's interest rate decision. The strategists stated that the European Central Bank is expected to keep the deposit rate unchanged at 2.0%, which aligns with market expectations. The central bank may indicate that uncertainty has decreased following a trade agreement between the U.S. and Europe, but will still emphasize that future decisions will be made on a meeting-by-meeting basis, relying on data. TD Securities strategists stated: “The U.S. CPI will be a larger driving factor in the forex market. We are cautious about the dollar strengthening due to stronger reports and signs of inflation transmission.”