EUR/USD returned over 1.1650 after President Lagarde said that the phase of higher inflation would last longer than previously thought. Economists at Société Générale expect the pair to extend its bounce on a break above 1.1670/1.1700.
Holding above 1.1570 is crucial for further up-move
“A break above multi-month channel at 1.1670/1.1700 will denote extension in rebound towards 200-DMA at 1.1910.”
“Defending 1.1570 is essential for further up-move.”
“Efforts to walk back market expectations of higher interest rates next year proved in vain. Lagarde explained that the outlook for inflation had not been met for a first-rate increase, implying that markets are ahead of themselves in pricing a 20bp rate increase in 2022.”
“The ECB estimates inflation will keep rising in the short term but there is every reason according to Lagarde to believe that price pressures will fade in 2022.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends gains above 1.0800 amid risk appetite
EUR/USD has regained traction above 1.0800 in European trading on Monday. The pair is finding fresh demand amid a modest pullback in the US Dollar and persisting risk flows. However, elevated US Treasury yields and dovish ECB bets cap the pair's upswing.
GBP/USD recovers above 1.2950 as USD loses ground on better mood
GBP/USD is recovering above 1.2950 in the European session on Monday. A pick up in risk sentiment and a minor US Dollar retreat is helping the pair stage a bounce but traders remain wary amid looming Middle East geopolitical risks and the BoE easing expectations.
Gold price remains on the defensive below $2,748-2,750 hurdle amid positive risk tone
Gold price struggles to capitalize on its intraday bounce and remains below the $2,748-2,750 supply zone through the early part of the European session on Monday. Safe-haven demand stemming from Middle East tensions and US election jitters continues to act as a tailwind for the precious metal.
Cardano Price Forecast: On-chain metrics and technical outlook signal bearish trend
Cardano is trading slightly down around $0.33 on Monday, struggling against resistance from its previously broken ascending trendline. Declining daily trading volume reinforces a bearish outlook, indicating reduced trader interest and liquidity in the ADA chain.
US elections: The race to the White House tightens
Trump closes in on Harris’s lead in the polls. Neck and neck race spurs market jitters. Outcome still hinges on battleground states.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.