Rate Differentials Shift in Favor of Dollar Versus Euro
Dow Jones09-23 15:12
0712 GMT - Interest-rate differentials between the U.S. and eurozone have shifted in favor of the dollar against the euro as energy prices ease, Commerzbank's Thu Lan Nguyen says in a note. "This reflects the market's view that inflation and monetary policy in the euro-area are more heavily influenced by energy prices than in the U.S." That assessment seems reasonable as recent U.S. inflation suggest price pressures have become more broad-based whereas the long-feared second-round effects in the euro area have so far remained limited, she says. The euro falls to an eight-week low of $1.1421, LSEG data show.
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