The EUR/USD exchange rate has experienced a significant increase of about 200 pips due to a selling pressure on the US dollar triggered by the release of US consumer inflation data. This currency pair has recorded its largest daily gain in months and seems poised to continue its upward trend.
Following the weakness of the US dollar after the US Consumer Price Index (CPI) remained unchanged in October, contrary to expectations of a 0.1% increase, and the annual interest rate was 3.2%, lower than the previous month's 3.7%. Core inflation also slowed down more than predicted. Bond yields and stocks on Wall Street also rose. This combination weighed on the greenback, causing it to drop to a monthly low and providing strong momentum for the EUR/USD pair to continue its upward trend towards the 1.09x level.
There will be additional US inflation data released on Wednesday with the publication of the Producer Price Index (PPI). Additionally, the Retail Sales report for October will be closely monitored. Signs of decreasing inflation, along with cautious consumers, could potentially leave the US dollar vulnerable until the focus shifts to the superior US economic situation.
Therefore, it would not be surprising if sellers continue to push prices down with an expected decrease to 1.0786.
Following the weakness of the US dollar after the US Consumer Price Index (CPI) remained unchanged in October, contrary to expectations of a 0.1% increase, and the annual interest rate was 3.2%, lower than the previous month's 3.7%. Core inflation also slowed down more than predicted. Bond yields and stocks on Wall Street also rose. This combination weighed on the greenback, causing it to drop to a monthly low and providing strong momentum for the EUR/USD pair to continue its upward trend towards the 1.09x level.
There will be additional US inflation data released on Wednesday with the publication of the Producer Price Index (PPI). Additionally, the Retail Sales report for October will be closely monitored. Signs of decreasing inflation, along with cautious consumers, could potentially leave the US dollar vulnerable until the focus shifts to the superior US economic situation.
Therefore, it would not be surprising if sellers continue to push prices down with an expected decrease to 1.0786.
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