(VIANEWS) – EUR/USD has held the support at 1.0017. It is expected that it will attempt to break the crucial resistance of 1.0030. The asset trades sideways between 0.9982-1.0056 and could make a move following the publication of the European Central Bank’s preferred inflation tool. The previous release of 8.9% saw the eurozone Harmonized Index of Consumer Prices rise to 9%.
FXStreet highlighted the fact that rising energy prices have accelerated price pressures in Europe following the restriction of Russian deliveries. Inflation expectations are higher, which increases the likelihood of an ECB rate increase at its next monetary policy meeting.
The USD and euro are trading at a premium following the latest ECB announcement regarding a half-point rate hike for the eurozone. The news was welcomed by the broader market, but the euro retreated later during ECB President Lagarde’s press conference. Lagarde emphasized the need for “complete flexibility” and “optionality.” This suggests that the ECB may not be fully sold on aggressive monetary policy adjustments in the fall. Furthermore, new macro projections show a rapid slowdown in global growth, a factor that could weigh on the US dollar.
While the Eurozone inflation data did not provide a clear picture of the situation, it did indicate that interest rates will be raised further by the ECB. In the last few days, the EUR/USD has jumped more than 1% as traders bet on a 75-bps rate hike by the ECB in September. According to Reuters, despite the risks of a recession, some policymakers are willing to consider the increase. In addition to that, the minutes from the last ECB monetary policy account show that the central bank is determined to continue raising interest rates. Moreover, inflation in the bloc is at record highs, which adds to the inflationary pressures.
Moreover, a number of economic reports due this week will be closely scrutinized by investors. Among these are the monthly nonfarm payrolls and CPI figures. On Wednesday, the Eurozone is expected to release the CPI figures for August. The expected annual rate of inflation will be 9.0%, up from 8.9% in July. This will push the ECB to raise rates aggressively.
EUR/USD (EURUSD) is currently on bearish momentum. At 09:06 EST on Thursday, 1 September, EUR/USD (EURUSD) is at 0.9998, 0.5599% down since the last session’s close.
EUR/USD (EURUSD) Range
Regarding EUR/USD’s daily highs and lows, it’s 0.517% down from its trailing 24 hours low of $1.01 and 0.587% down from its trailing 24 hours high of $1.01.
EUR/USD’s yearly highs and lows, it’s 0.959% up from its 52-week low and 16.04% down from its 52-week high.
EUR/USD’s last week, last month’s, and last quarter’s current intraday variation average was a positive 0.15%, a negative 0.11%, and a positive 0.48%, respectively.
EUR/USD’s highest amplitude of average volatility was 0.24% (last week), 0.48% (last month), and 0.48% (last quarter), respectively.
Forex Price Classification
According to the stochastic oscillator, a useful indicator of overbought and oversold conditions, EUR/USD’s Forex is considered to be oversold (<=20).
Last News About EUR/USD (EURUSD)
- Eur/usd oscillates above 1.0000 ahead of US ISM pmi, US NFP remains a key event. According to FXStreet on Thursday, 1 September, “The EUR/USD pair has turned sideways as investors are awaiting the release of the US ISM Manufacturing PMI data. “
- Eur/usd price analysis: snaps three-day uptrend, 0.9985 in the spotlight. According to FXStreet on Thursday, 1 September, “In a case where the EUR/USD remains weak past 0.9985, a south-run towards the monthly low of 0.9900, marked the last week, can’t be ruled out.”, “Following that, the triangle’s upper line and the 61.8% gold ratio, respectively around 1.0080 and 1.0090, could challenge the EUR/USD buyers.”
More news about EUR/USD (EURUSD).