Euro-dollar dynamics and the inflation debate

Watch Video

Euro-dollar dynamics and the inflation debate

By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group

Gold, Dollar Signaling Inflation Risk?

  • Gold, dollar signaling market expectations for higher inflation?
  • Rising yields are consistent with concerns over inflation risk.
  • Fed’s pause in asset purchases could be behind rising long-term yield.
  • Inflation has held at about 2% for 25 years despite efforts to raise it.
Watch video

Euro Surges Against US Dollar Despite Negative Rates

  • Euro rallied to a 27-month high against US dollar in August.
  • Euro buoyed by continued pandemic fiscal stimulus in Europe.
  • Negative rates in eurozone have not worked against euro.
  • Uncertainty over US election outcomes weighing on dollar?
Read article