Euro Slips As ECB Doubts Grow

Overnight FX moves were led by a softer euro after benign French December CPI and weaker-than-expected German state CPI readings.

 

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Overnight FX moves were led by a softer euro after benign French December CPI and weaker-than-expected German state CPI readings, particularly in the core components, prompting growing questions about whether the ECB’s December forecasts may have been overly hawkish despite prior efforts to correct earlier dovish bias.

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