It nudged up to a high of around ~60% earlier after the French inflation numbers but was quickly dragged back down and Schnabel’s indecisive comments here are also not really helping with confidence about another rate hike. It’s a volatile one to start the day but at the balance, this is weighing on the euro with EUR/USD now down 0.2% to 1.0900 to start the session.
The only blotch with the French inflation report earlier I would say is that the details reveal that it was energy prices that led to a further surge in price pressures mostly. Other categories such as food price inflation and services inflation did show further signs of easing.
Other than that, it is a bit messy in terms of what traders are trying to price in for the ECB next month and it doesn’t look like we might get much answers today – even with the Eurozone CPI data coming up. But we’ll see.