President Trump has floated the idea of an additional 20% tariff on European goods, potentially set for announcement later on Wednesday. This move revives worries of a transatlantic trade spat, with auto and pharmaceutical sectors reportedly in the crosshairs. Any retaliatory measures from the EU could undermine global growth and apply fresh downward pressure on the Euro.
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Eurozone Preliminary HICP inflation edges higher to 2.4% YoY in December, as expected
The Eurozone Harmonized Index of Consumer Prices (HICP) rose 2.4% year-over-year (YoY) in December after reporting a 2.2% increase in November, the official data released by Eurostat showed Monday. The reading aligned with the estimated 2.4% print for the reported period.
Euro Fall Back After ECB Rates Hikes by 75bps – GSR
It’s been another choppy session for European markets, dropping to their lows of the day in the aftermath of the ECB’s decision to hike rates by 75bps, and hawkish comments from Fed chair Jay Powell.
AUD/USD appears to be on track to test the September low
AUD/USD appears to be on track to test the September low (0.7006) as RBA Governor Philip Lowe pledges to not increase the official cash rate (OCR) “for at least three years,” and it seems as though the central bank will offer a more details over the coming months as officials plan to update the economic in “early November.”