- EUR/USD hits five-week high, then US CPI inflation flattens the Bucks.
- Day after day, due to the pull from the higher level, the fiber becomes ready for a new change at the lower level.
- On the US PPI wholesale inflation docket on Friday.
EUR/USD hit a brand new five-week high on Thursday, bolstered by a broad-market sell-off of the United States dollar, then US Consumer Price Index (CPI) inflation data that has been on the rise for some time now. Softened until the slowest moment. 2021. Bright expectations of emerging markets tariff cuts have left market sentiment at a higher level in Friday’s market advisory. On the other hand, an anticipated rise in US Manufacturer Price Index (PPI) wholesale inflation could dent the bulls’ cheer. ECU information was a little late in impressing euro investors on Thursday, with final German Harmonized Index of Client Costs (HICP) inflation coming in at 2.5% year-on-year, ahead of estimates.
Forex Market These Days: Focus Remains on US Inflation
In June, US CPI inflation fell below expectations. Annual headline CPI inflation declined to 0.0% from 3.3% previously, above the forecast 3.1%. Moreover, CPI inflation fell to -0.1% MoM in June, down from 0.0% last year and below the expected 0.1%.
For the month ending July 5, US initial jobless claims decreased to 222K, down from a revised 239K the previous month and outperforming the forecast 236K. This decline in jobless claims dropped the four-week average to 233.5K from 238.75K previously.
Due to a sharp deceleration in US CPI inflation, market expectations of a rate hike from the Federal Reserve (Fed) now indicate the possibility of three quarter-point rate cuts in 2024. CME’s FedWatch instrument shows a 95% increase in the likelihood of a rate cut in September.
With US CPI data out of the question at best, all that’s left for the month is Friday’s US Manufacturer Price Index (PPI) wholesale inflation print, which could disrupt plans for rate cut expectations. It is estimated that the core PPI for June will rise to 2.5% from 2.3% earlier, as companies face more pricing pressure than the Fed expects.
euro value these days
The table below presents the exchange rates of the Euro (EUR) against the primary currencies listed today. The euro used to be the strongest against the United States greenback.
| USD | EUR | gbp | JPY | scurvy | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.06% | -0.08% | -0.44% | -0.05% | -0.17% | -0.01% | -0.01% | |
| EUR | 0.06% | -0.02% | -0.31% | 0.00% | -0.13% | 0.04% | 0.03% | |
| gbp | 0.08% | 0.02% | -0.31% | 0.02% | -0.12% | 0.05% | 0.04% | |
| JPY | 0.44% | 0.31% | 0.31% | 0.28% | 0.18% | 0.33% | 0.33% | |
| scurvy | 0.05% | -0.00% | -0.02% | -0.28% | -0.12% | 0.03% | 0.02% | |
| AUD | 0.17% | 0.13% | 0.12% | -0.18% | 0.12% | 0.16% | 0.15% | |
| NZD | 0.01% | -0.04% | -0.05% | -0.33% | -0.03% | -0.16% | 0.00% | |
| CHF | 0.00% | -0.03% | -0.04% | -0.33% | -0.02% | -0.15% | -0.00% |
Heat map presentations share the adjustments of primary currencies against each option. The lower currency is selected from the left column, the date quote currency is selected from the government row. For example, if you select the Euro from the left column and move along the horizontal series to the United States Greenback, the ratio displayed within the field will constitute the exchange EUR (below)/USD (quote).
EUR/USD Technical Outlook
Fiber’s Friday rally pulled the pair to brand new near-term highs, attempting a careening of 1.0900 before falling back to exhaustion against 1.0870. EUR/USD has broken above a key technical consolidation level near 1.0805, and the next challenge may be to move to the downside without slipping back below the technical boundaries near the 200-hour exponential moving average (EMA) near 1.0808.
Despite the company’s pressure in the upper zone, the Fib Remnant broke through a thick descending channel, and the day-by-day candlesticks are ready for a bearish turnaround as EUR/USD waffles just below 1.0900.
EUR/USD hourly chart
EUR/USD Daily Chart
Euro FAQ
The euro is the foreign currency for the 20 European Union countries belonging to the eurozone. It is the second most closely traded foreign currency in the world after the United States greenback. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily contribution of more than $2.2 trillion per day. EUR/USD is probably the most traded currency pair in the world, with an estimated 30% discount on all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%. ).
The ECU Central Store (ECB) in Frankfurt, Germany, holds stock for the Eurozone. The ECB sets interest rates and manages financial coverage. The ECB’s number one mandate is to protect price balance, whether that means both controlling inflation or encouraging expansion. The number one means of doing this is to increase or decrease interest rates. Moderately high interest rates – or the anticipation of higher fees – will generally favor the euro and vice versa. The ECB Governing Council takes financial policy decisions in meetings held 8 times per day. The selection is made by six permanent individuals, including the heads of the eurozone national banks and Christine Lagarde, President of the ECB.
Eurozone inflation information, measured through the Harmonized Index of Consumer Costs (HICP), is a notable econometric measure for the euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it forces the ECB to raise interest rates to get it back under control. Moderately higher rates of interest compared to the opposite numbers will generally benefit the euro, as it makes the patch extra attractive as a park for international traders to drop their cash.
The information release reveals the state of the financial system and will have an impact on the euro. Indicators such as GDP, manufacturing and services and product PMIs, trade and consumer sentiment surveys can all influence the path of a currency. A powerful financial system is a perfect fit for the euro. This would not only attract additional foreign investment but it would also prompt the ECB to raise interest rates, which would directly strengthen the euro. Put another way, if financial information is weak, the euro is more likely to decline. Financial data are particularly important for the Eurozone’s four largest economies (Germany, France, Italy and Spain), as they account for 75% of the eurozone economy.
Some other important information for the Euro is industry stability. This indicator measures the excess between what a country earns from its exports and how much it spends on imports in a given period. If a country produces a product in high demand and subsequently exports, the value of its foreign exchange will be derived purely from the residual demand of foreign patrons willing to buy those goods. Due to this fact, a favorable internet industry balance strengthens the foreign exchange and vice versa for an unfavorable balance.
Discover more from news2source
Subscribe to get the latest posts sent to your email.
