EUR/USD supported by green shoots in the EZ - ANZ

Analysts at ANZ noted that the EZ was showing signs of green shoots, propelling EUR/USD higher.

Key Quotes:

"Maybe, and it is early days, but FX markets were buoyed by European July core inflation rising from 1.1% to 1.2% y/y, which helped send EUR soaring (mind you, the weaker USD also played a role). 

The data (together with unemployment data) provides some grounds for optimism and arguably confirms that deflationary pressures are receding. 

But it still remains some way off target and the rise is in no small part down to the ECB's extraordinary monetary policies. Whilst the data is encouraging, we remain of the view that the ECB will be very slow to change policy."