Eurozone Inflation Is Rising and the Euro Keeps Falling

Euro dollar weakness is holding despite eurozone inflation at a two year high, because weak growth data is outweighing hawkish rate bets. Fiona Cincotta, StoneX Senior Market Analyst, breaks down why the single currency is under pressure, what German retail sales revealed about domestic demand, and which release matters next. Eurozone inflation rose to 3.3% year on year in August, its highest level since September 2023 and well above the European Central Bank's 2% target, driven largely by rising energy prices. Markets are now pricing roughly an 80% probability of a second rate hike after a September move, yet German retail sales fell 3.4% in July against expectations of a 0.4% increase, the sharpest decline in four years. Rising Brent crude and firmer Treasury yields add a second layer of pressure, with the U.S. jobs report on Friday the next major test. Discover Actionable Insights with the latest Market Outlook Reports: https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_fiona_cincotta&utm_content=share 00:00 - Hot Inflation, Weaker Euro 00:26 - European Central Bank Bets 01:22 - German Retail Sales Crack 02:09 - Crude Adds to Euro Pressure 02:45 - U.S. Jobs Report Is Next Test 03:29 - Where the Euro Breaks Next Like and subscribe for more financial market insights. #Forex #StoneX #FionaCincotta #ECB