BlockBeats News, July 3rd - Chief Economist at Allianz, Ludovic Subran, stated: "The U.S. non-farm payroll data has actually been weak, but I still believe the inflation rate will peak at above 3.7%, and artificial intelligence, fiscal stimulus, and the energy sector are still supporting economic growth. The Fed may have to raise interest rates in September. I believe this is where the true divergence between Europe and the U.S. lies."

Subran believes that after the rate hike last month, the European Central Bank will not take action again. "That was a precautionary rate hike, but based on the current data, it seems that phase is over," he said. "The trauma effect of the (Iran) war will take time to show, the economy is still bearing the cost of the war, but the situation is much better now than it was a few weeks ago." (FXStreet)