Vasilis Tsaprounis
Independent Analyst
The single European currency is holding close to 1,09 level after the satisfactory gains it recorded yesterday as the mildly upward momentum the pair has been in recently continued, receiving a significant boost from the announcement of the increase in inflationary pressures in the German economy.
Inflationary pressures in the European economy have been the main factor that has strengthened the European currency recently as it has led the European Central Bank to maintain aggressive rhetoric on interest rate hikes.
For this reason, today's announcement on the course of inflation in general in the whole of the Eurozone is awaited with particular interest as it will strengthen or not Ecb's hawkish rhetoric.
Τhe significant de-escalation in energy prices and in particular in the prices of natural gas, which has been found again at low levels since August 2020 for the second time in a few weeks, does not seem so far to have act strongly in reducing inflationary pressures, but if prices are maintained at these levels is expected to happen soon.
Τhe general picture of the market remains broadly the same, the mild upward momentum that the European currency has been recently continued for one more day, but something where as we move higher the possibility of continuing will be limited.
Today's agenda is very rich with important and stormy news which is expected to be reflected in the exchange rate especially if there are big surprises.
In addition to the data on inflation and unemployment in the European economy, we also have important news for Personal consumption, personal income and others in US.
In a stormy news environment I would prefer to maintain a wait-and-see attitude as the possibility that the mildly upward momentum of the European currency will be limited and to have some correction is increased.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.