Core Viewpoint - The euro is experiencing an upward trend against the US dollar, currently trading around 1.1670, with a 0.27% increase from the previous close of 1.1639. This movement is influenced by higher-than-expected inflation data from the Eurozone, which may impact future monetary policy decisions by the European Central Bank (ECB) [1][1][1]. Economic Indicators - Eurozone's July CPI preliminary year-on-year rate recorded at 2.0%, exceeding the expected 1.9%. The core CPI year-on-year rate met expectations at 2.3% [1][1][1]. - The persistent inflation pressures suggest that inflation may remain above the ECB's expectations for several quarters, reducing the likelihood of further interest rate cuts [1][1][1]. Market Implications - The market is advised to be cautious regarding the potential re-pricing of interest rate cut expectations due to the inflation data, which reflects concerns over the ECB's future policy path [1][1][1]. - Increased volatility in risk assets is anticipated as inflation pressures continue [1][1][1]. Technical Analysis - The euro has gained bullish momentum after breaking the 1.1600 resistance level, with the daily relative strength index (RSI) surpassing the 50.0 mark. However, the 4-hour RSI has entered the overbought territory [1][1][1]. - The next bullish target is identified in the 1.1700-1.1710 range, which coincides with significant Fibonacci retracement levels and previous low points. A notable resistance is expected in this area, with the July 24 high of 1.1790 being a key focus for further upward movement [1][1][1].

Core Viewpoint - The European Central Bank (ECB) is closely monitoring exchange rate fluctuations, indicating that the euro is still near its historical average level, and believes that its current stable and prudent policy is appropriate [1] Group 1 - The ECB's governing council member Kazaks stated that the euro remains close to its historical average [1] - The ECB will continue to monitor exchange rate volatility [1] - The current stable and prudent policy of the ECB is deemed suitable [1]

Core Viewpoint - The President of the European Central Bank, Christine Lagarde, stated that the bank is not confirming a pause in its monetary policy [1] Group 1 - Lagarde emphasized that the current economic conditions do not guarantee a halt in policy adjustments [1] - The ECB is closely monitoring inflation and economic growth indicators to inform future decisions [1] - There is an ongoing assessment of the impact of previous interest rate hikes on the economy [1]