EURUSD:
The EUR/USD currency pair is correcting downwards, reflecting a decrease in demand for the euro following a series of macroeconomic events in the eurozone and the US. The latest inflation data from Germany show a slowdown in growth rates against the backdrop of an annual increase to 2.2%, which was higher than expert expectations. At the same time, investors note uncertainty about the prospects of monetary policy tightening by the ECB, thereby strengthening bearish sentiment on the pair.
On the US dollar side, the situation is determined by expectations of an imminent Fed rate cut, which is likely to occur before the end of the year. This supports short-term optimism among buyers, but the lack of new stimuli is holding back the growth of the American currency. The key fundamental driver remains the weakness of the dollar, noted in recent reports, and the anticipation of important US employment data.
US government bond yields are showing mixed dynamics, and macroeconomic data on inflation and the labor market maintain intrigue ahead of the release of new figures. European economic activity remains subdued, which calls into question the further strengthening of the euro. In the short term, the EUR/USD pair remains prone to decline with the potential to test the 1.1590 level.
Trading recommendation: SELL 1.1695, SL 1.1715, TP 1.1590
Origin: FreshForex
