Fed faces a tougher battle against inflation than the ECB: US$ to stay stronger than EUR

A snippet only from Deutsche Bank, remaining bullish on the US dollar:

• dollar likely to remain strong versus the euro
• Fed faces a tougher battle against inflation than the ECB
• forward-looking US indicators point to lasting inflationary pressures
• immigration to the US is falling, even before Trump policies, choking a “positive supply shock [that] played a dominant role in allowing the Fed to turn more dovish this year”

DB expect the Federal Open Market Committee (FOMC) to cut at the meeting nest week, followed by “a very long pause.”

• ECB is expected to keep easing

ECB rate cut expected today.

This article was written by Eamonn Sheridan at www.forexlive.com.