EUR/USD to enjoy a deeper recovery on a break above 0.9945 – BBH

EUR/USD traded as high as 0.9905 today. The pair could rally towards 1.02 on a break past 0.9945, economists at BBH report.

ECB tightening expectations have fallen in recent days

“Break above 0.9945 would set up a deeper recovery to the September 12 high near 1.02.”

“The eurozone reported August PPI. It came in a tick higher than expected at 43.3% YoY vs. a revised 38.0% (was 37.9%) in July. After some relief in May and June, PPI inflation has resumed climbing to new record highs and points to continued upward pressure to CPI. However, ECB tightening expectations have fallen in recent days.”