U.S. Rate Edge Over Euro Zone Wanes to Boost Euro

Fading expectations for further rate hikes by the Federal Reserve amid signs of weaker U.S. inflation have narrowed the interest rate differential between the U.S. and the euro zone, boosting EUR/USD, analysts at Helaba Bank said.
“The fading of U.S. interest rate speculation and the waning U.S. interest rate advantage over the euro area are supporting the euro,” they said.
The euro touched a 15-month high of $1.1248 earlier, according to FactSet data.
Analysts at Deutsche Bank said the next hurdle for the pair is 1.1280, “although no fundamental drivers are expected today.”