Helaba Bank: Weakening U.S. Interest Rate Advantage Over Euro Zone will 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 the euro against the dollar, analysts at Helaba Bank said.
“The fading of U.S. interest rate speculation and the fading interest rate advantage of the U.S. 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.
According to Deutsche Bank analysts, the next hurdle for the pair is 1.1280.