Commentary Actionforex

• A high-profile panel debate at the ECB Sintra forum featuring Fed Chair Warsh, ECB President Lagarde, BoE Governor Bailey, and Bank of Canada Governor Macklem failed to provide new insights into short-term monetary policy. • In contrast, the Bank of Korea is expected to raise its current 2.5% policy rate multiple times in the coming months due to persistent inflation above the 2% target. • South Korea's economy continues to benefit from the AI and semiconductor boom, though the Korean won remains historically weak, trading around USD/KRW 1554.75.

• Market trading during the final session of the quarter was driven by end-of-quarter repositioning, comments from the ECB Sintra forum, and new economic data. • July inflation figures for EMU members showed slight downside surprises, with Germany reporting HICP of -0.2% M/M (2.4% Y/Y) and France reporting -0.3% M/M (2% Y/Y). • Italy's data showed a slight increase of 0.1% M/M, resulting in a yearly inflation rate of 3.1%.

• Belgium and Spain released their national Harmonized Index of Consumer Prices (HICP) data, marking the start of a series of reports leading up to the full euro area print this Wednesday. • Belgian harmonized CPI showed a significant decrease, dropping from 4.1% in May to 3% in June. • Spanish inflation unexpectedly remained steady at 3.6% annually, defying the 3.4% consensus forecast due to a monthly price increase of 0.6%.