top of page

Title : EURUSD Price holds parity on hawkish Fedspeak, EU Economic Forecasts eyed

Writer's picture: analysiswatchanalysiswatch

Jul 14, 2022 12:37 AM ET

By: AnalysisWatch


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 On the other hand, US President Biden mentioned that the CPI data is "out of date" as gasoline prices have fallen.

3 views0 comments

Kommentare


2b94f773-a237-4da7-a599-6b42314ed9e6.png

Risk Disclosure: AnalysisWatch will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.
AnalysisWatch would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore AnalysisWatch doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

bottom of page