Important events today:

14:00 UTC – US: inflation expectations from the University of Michigan.

No sooner had the Federal Reserve raised rates than the market began discussing a rate hike at the September meeting once again. The jobless claims report signaled a strong labor market, according to all laws of economics, will lead to higher inflation. U.S. government bond yields have moved quickly and the 10-year paper is already trading at 4%, a 2-week high and favorable for a stronger dollar.

At the same time, the ECB, which on Thursday raised rates by 0.25 p.p. to 4.25%, is already starting to put on the brakes and said that further rate hikes would only be prudent if inflation risks are high, although it immediately made the caveat that the risks have not yet been leveled. “Nothing is clear, but very interesting” – this is how we can characterize yesterday’s press conference of ECB head Christine Lagarde. Investors are disappointed in the weakness of the ECB, which is negative for the euro exchange rate.

Recommendations: Sell 1.1000/1.1025 and TP 1.0885.