EUR/USD Current Price: 1.2173
- US inflation advanced at its fastest pace since 2008 in May, hitting 5% YoY.
- The European Central Bank kept its monetary policy unchanged as anticipated.
- EUR/USD remains neutral sub-1.2200, bears would have better chances once below 1.2160.
The EUR/USD pair ended Thursday with modest losses in the 1.2170 price zone. The pair remained below the 1.2200 and posted a fresh weekly low at 1.2142, barely reacting to first-tier events. The US reported May inflation figures, which were upwardly revised, with the annual CPI hitting 5%, accelerating at its fastest pace since 2008. The core reading resulted at 3.8%, also suffering a sharp upward revision. However, the numbers failed to spur concerns. Stocks edged higher while US Treasury yields returned to weekly lows after a short-lived spike.
Also, the European Central Bank announced its monetary policy decision. As widely anticipated, policymakers left rates and easing unchanged and reiterated that they would continue supporting the economy through their different programs. President Christine Lagarde offered a mixed speech, as she said price pressures remain subdued and that it is too early to discuss tapering. At the same time, the ECB upwardly revised the growth forecast to 4.6% for this year and to 4.7% for the next one.
On Friday, Germany will publish May inflation data, while in the US, the focus will be on the preliminary estimate of the June Michigan Consumer Sentiment Index, foreseen at 84 from 82.9 previously.
EUR/USD short-term technical outlook
The EUR/USD pair is technically neutral, without signs of an upcoming breakout. The 4-hour chart shows that the pair is contained by directionless moving averages, while technical indicators head nowhere around their midlines. The pair would need to clear the 1.2200 level to gain bullish traction, while bears have better chances on a break below 1.2160.
Support levels: 1.2160 1.2120 1.2070
Resistance levels: 1.2200 1.2245 1.2280
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.