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.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD drops below 1.0700 on stronger USD, EU political angst

EUR/USD drops below 1.0700 on stronger USD, EU political angst

EUR/USD stays under bearish pressure and trades deep in negative territory below 1.0700 in the American session on Friday. Unabated US Dollar demand and looming EU political uncertainty exert downside pressure on the pair heading into the weekend.

EUR/USD News

GBP/USD slumps to multi-week lows below 1.2800

GBP/USD slumps to multi-week lows below 1.2800

GBP/USD extends its decline on Friday and trades at its lowest level in nearly a month below 1.2700. In the absence of high-tier data releases, the US Dollar continues to benefit from souring market mood, forcing the pair to stretch lower in the second half of the day.

GBP/USD News

Gold clings to recovery gains at around $2,330

Gold clings to recovery gains at around $2,330

Following Thursday's pullback, Gold holds its ground on Friday and trades in positive territory near $2,330. The benchmark 10-year US Treasury bond yield edges lower toward 4.2%, helping XAU/USD push higher ahead of the weekend.

Gold News

Monero price poised for a downward correction

Monero price poised for a downward correction

Monero price has encountered resistance at a critical level. The technical outlook suggests a potential short-term correction as momentum indicators signal a bearish divergence.

Read more

US Dollar holding up well despite rate pricing

US Dollar holding up well despite rate pricing

It’s been an interesting week for financial markets. The most striking development in our opinion is the fact that the market is back to pricing two full rate cuts from the Fed in 2024, and yet, the Dollar has held up relatively well considering.  

Read more

Majors

Cryptocurrencies

Signatures