Pound and Euro Decline Following US Inflation Data Release
Yesterdays Consumer Price Index (CPI) data showed that inflation in the US continues to slow. The rate fell to 2.4%, down from last month's 2.5%, but slightly above the experts' forecast of 2.3%. These figures supported the dollar, as slowing inflation and a strong labour market may lead the Federal Reserve to refrain from aggressive interest rate cuts in the coming months.
EUR/USD
The euro tested key support at the 1.0900 level yesterday. By the end of the day, EUR/USD buyers managed to correct the price to 1.0940. Price action within the 1.1000-1.0900 range will be crucial for the pairs future direction. A break below 1.0900 could extend the downtrend towards 1.0800-1.0700, while a resumption of the uptrend is possible with a decisive move above the psychological level of 1.1000.
Key events affecting the pairs price action:
- Today at 09:00 (GMT+3), the release of Germanys Consumer Price Index (CPI).
- Today at 14:00 (GMT+3), the release of Germanys Current Account Balance (non-seasonally adjusted).
- Today at 15:30 (GMT+3), the release of the US Producer Price Index (PPI).
According to the technical analysis of the EUR/USD pair, the price could decline towards 1.0800, as a "double top" pattern is forming on the daily time frame.
GBP/USD
Sellers of GBP/USD nearly tested key support at 1.3000 yesterday. Technical analysis indicates the potential for continued downward movement, as a bearish "tower" formation has developed on the daily time frame. However, attention should be paid to price action in the 1.3040-1.3000 range, as these levels have acted as both support and resistance. A correction to 1.3170-1.3100 is possible here.
Key events that may impact the pairs movement:
- Today at 09:00 (GMT+3), the release of the UKs GDP data for August.
- Today at 09:00 (GMT+3), the release of the UKs industrial production data for September.
- Today at 15:00 (GMT+3), the release of the UKs monthly GDP tracker from NI.
Read more: https://fxopen.com/blog/en/ru-pound-and-euro-decline-following-us-inflation-data-release/
Text source: Forex Trading Blog
