Title : EURUSD Price holds parity on hawkish Fedspeak, EU Economic Forecasts eyed
Jul 14, 2022 12:37 AM ET
The EURUSD price remains down around 1.0030, after a failed attempt to recover from a near two-decade low the previous day. The major currency pair's rebound from the lowest levels since December 2002 reversed from 1.0122, extending the pullback towards the 1.0000 parity level of late.
The major currency pair reflects market pessimism about Eurozone economic conditions while justifying hawkish Fed bets following multi-year high inflation in the U.S. However, it is worth noting that quarterly economic forecasts for the European Union (EU) appear to be the key for intraday traders, although recession fears may keep the bears happy.
U.S. inflation, according to the June Consumer Price Index (CPI), hit a 40-year high of 9.1% year-over-year versus 8.8% expected and 8.6% prior. However, the core CPI, which excludes volatile food and energy prices, fell to 5.9% from 6% previously, but beat analysts' forecasts of 5.8%. Increased price pressure in the US pushes the market towards dollar demand and weighs on the EURUSD price. Reuters reported that following the US data, White House (WH) economic advisor Brian Deese told CNBC that the CPI data shows the urgency for Congress to pass legislation to stimulate US semiconductor manufacturing. On the other hand, US President Biden mentioned that the CPI data is "out of date" as gasoline prices have fallen.