EUR/USD: Today's EU inflation and other major news will drive the pair
|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.
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