Euro on Bullish Trajectory Following Lower US Inflation

Updated:

Checkmark

Invest at least $250 in D2T to gain lifetime access to our VIP Signals

Checkmark

Get early access to Dash 2 Trade’s Presale. Buy the D2T token now

Checkmark

Existing community of 70,000+ traders

Checkmark

Unlocks access to the leading crypto trading analysis, signals and trading tools

Checkmark

As featured in CryptoNews.com, FXEmpire.com, FXStreet.com and more

Checkmark

World class development team backed by Quant developers and VC investors



Following the publication of a modest inflation report in the United States, as indicated by the Department of Labor’s (DoL) October Consumer Price Index (CPI) data, the euro (EUR) ended last week on a stronger note and could resume on a bullish trajectory this week.

That said, as expectations for a slowing in the Federal Reserve’s (Fed) tightening cycle following the CPI announcement remained high, the US dollar (USD) extended its losses for four straight weeks. As a result, the EUR/USD increased by 1.42% to trade at 1.0352 as the euro continued to rise.

EUR/USD Price Increases Towards 0.9800, Due Weakening Dollar

Wall Street saw significant gains for the week. Core CPI, which the Federal Reserve regularly monitors, slipped from 6.6% YoY in September to 6.3% on Thursday, considerably below expectations, according to US inflation data.

According to data released on Friday, the University of Michigan’s (UoM) Consumer Sentiment for November fell to a four-month low, from 59.5 to 54.7.

According to the UoM research, they predict inflation to rise from 2.9% to 3% over the next five to ten years, but 5.1% over the next year. The survey’s director, Joanne Hsu, stated that such entrenchment in the future is still conceivable due to the ongoing uncertainties surrounding inflation forecasts.

The traders’ response to the UoM poll was overshadowed by last Thursday’s CPI news. On Friday, the EUR/USD continued to rise after falling to its daily low of 1.0163 and then rising to its daily high of 1.0364.

Euro and USD Investors Heavily Pricing in a 0.50% Rate Hike from Us Fed

Investors are starting to factor in a Fed that is less “hawkish.” The CME FedWatch Tool demonstrates that following the release of US inflation statistics, money market futures are still pricing in a 50 basis point rate increase, with the probability hovering around 80.6%.

Source: CMEGroup

In line with expectations, the CPI in Germany for the Eurozone (EU) grew by 10.4% annually. The German Harmonized Index of Consumer Prices (HICP) increased by 11.6% year over year in October, as predicted, but by 0.7% more than in September.

 

You can purchase Lucky Block here. Buy LBLOCK

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.