Title: EUR/USD steadies near 1.0220 with eyes on German/US inflation amid hawkish Fed bets
August 10, 2022 12:05 AM ET
Early Wednesday morning, EUR/USD was hovering around the day's high of 1.0220. The major currency pairs recently cheered the recovery of the U.S. dollar, but the cautious mood ahead of inflation figures from Germany and the U.S. seems to challenge the pair's buyers.
Fears of an economic slowdown escalated after Russia announced a disruption in the flow of oil due to a break in the Druzhba pipeline that supplies the black gold. Reuters reported, "Russia has reportedly suspended oil flow through the southern section of the Druzhba pipeline due to transit payment problems."
The landmark tax, climate and health care bill, which passed the Senate on Sunday and heads to the House on Friday, "sets up a slimmed-down version of President Joe Biden's domestic agenda to become law after a year of Democratic infighting that the White House could not control," JP Morgan told Reuters.
Elsewhere, weaker Chinese inflation data in July also weighed on market sentiment. China's consumer price index (CPI) fell to 2.7% in July from 2.9% (expected) and 2.5% (previous). In addition, the producer price index (PPI) fell to 4.2% versus market forecasts of 8.0% and 6.1% in previous readings.
In terms of sentiment, 10-year U.S. Treasury yields struggled to continue their advance from the previous day to 2.79%, hovering around 2.786% at the time of publication. S&P 500 futures, unchanged at 4,125 despite Wall Street's losses, also reflected the sluggish market performance.