Euro jumped to a two-month high against the dollar on Wednesday on expectation of rate hike by the European central bank, at a time when the Fed is seen holding rates steady. Elevated energy prices remain a concern for the Euro Area, particularly as tensions in the Middle East show little sign of easing. On Tuesday, ECB chief economist Philip Lane said the regions 3% inflation rate remains too high when considering potential adjustments to policy rates. Data on Tuesday showed that the German ZEW Survey – Economic Sentiment came in at 34.2 in August, versus 26.3 prior, better than the estimates of 30.00. The ZEW Survey – Current Situation improves to -61.1 in August, compared to -77.6 in July, stronger than the -68.8 expected. Markets now await the European Central Bank (ECB) President Christine Lagardes speech slated for later today. Currently, EUR/USD is quoting at $1.1609, up 0.18% on the day. On NSE, EUR/INR futures are trading at 110.86, almost flat on the day.
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