EUR/USD Headed Down Again After the Mixed CPI Figures
EUR/USD has been bearish for several weeks since July, losing around 5 cents as the USD turned bullish on hawkish FED rhetoric, while the ECB rhetoric has softened up, suggesting that they might not push for further rate hikes after the September meeting which is priced in.
Markets were pricing in another FED hike as well on November 1, but now that is questionable as well, after the recent rounds of economic data from the US, which has been showing increasing weakness. This has led to a reversal in EUR/USD after the price reached the 100 SMA (green) on the weekly chart. This week we are seeing some bullish momentum as the economic data softens further and the price has bounced off this moving average.
Yesterday this forex pair continued to gain momentum and advanced to reach its highest level of the week, approaching 1.0945 after the USD went through another wave of selling, following the miss in the ADP employment and the revision lower for the Q2 GDP. However, the Eurozone economy is in an even worse position as it heads into a recession, which has forced the ECB to turn less hawkish. So, Euro traders were waiting for the
Eurozone Flash CPI Estimate Inflation Report
- August preliminary CPI YoY +5.3% vs +5.1% expected
- July Prelim CPI +5.3%
- Core CPI +5.3% vs +5.3% expected
- Prior core CPI +5.5%
EUR/USD Live Chart
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