The EUR/USD pair remains capped below 1.0950 as markets await the release of key US inflation data later this week. With the US Consumer Price Index (CPI) and Producer Price Index (PPI) figures on the horizon, market sentiment hangs in the balance as investors analyze the potential impact on currency movements.
US PPI figures are scheduled for Tuesday, with expectations for a decrease in structural inflation pressures. Core PPI for July is forecasted to ease to 2.7% from the previous 3.0%. Similarly, Wednesday’s YoY core CPI inflation is anticipated to tick down to 3.2% from 3.3%, further adding to the uncertainty surrounding market sentiment.
Despite recent adjustments in rate markets’ expectations for a double-cut in September, a 25-bps cut from the Fed is still priced in with 100% odds. The outcome of the US inflation data will likely have a significant impact on these expectations.
Additionally, Pan-EU Gross Domestic Product (GDP) figures are set to be released early Wednesday, providing further insights into the economic landscape and its implications for the Euro.
Looking at the EUR/USD daily chart, the pair is trading within a descending channel, with resistance near 1.1000. While a pattern of higher lows is forming, a dip back to the 200-day Exponential Moving Average (EMA) near 1.0800 is possible if bullish momentum does not pick up.
Analyzing the Impact on Your Finances
The upcoming US inflation data and EU GDP figures will likely drive market movements and impact currency pairs like the EUR/USD. Investors should closely monitor these releases and consider adjusting their investment strategies based on the outcomes.
For individuals with exposure to the EUR/USD pair or other related assets, understanding the implications of these economic indicators is crucial for making informed financial decisions. Stay informed, stay vigilant, and be prepared to adapt to changing market conditions to protect and grow your investments.