9/13/2022 8:18:25 AM
By: AnalysisWatch
EUR/USD rose for the third consecutive session, extending its positive start to the week well above parity, always against the backdrop of strong selling pressure on the dollar.
As investors practically digested the latest ECB meeting and with the 34-point rate hike by the Fed practically priced in, market participants now look to upcoming important data releases to determine the pair's price direction in the next few sessions.
To that end, economic sentiment as measured by the ZEW institute will be released later in Germany and wider Europe for the month, whilst US inflation figures tracked by the CPI will gather all the attention later in the NA session. Earlier on Tuesday, Germany's final CPI rose 0.3% MoM and 7.9% in the year to August.
EUR/USD is keeping the supply bias unchanged so far this week and aims to revisit Monday's peak in the 1.0200 zone sooner rather than later.
So far, price action around the European currency is expected to follow dollar dynamics, geopolitical concerns, fragmentation fears, and Fed-ECB divergence.
On the downside for the euro, there is growing speculation about a potential regional recession, which seems to be supported by a shrinking sentiment gauge as well as an impending slowdown in some fundamentals.
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