After rallying strong for 2 straight days against the US dollar, the Euro is taking a break in today’s Asian trading session as market participants gear up for a raft of economic news from both sides of the Atlantic which is sure to create some solid trading opportunities.
Most analysts have been predicting the Euro would move low over the next few weeks to fresh multi-year lows, but instead the European currency has gained more than 200 points against the greenback. The Bank of England’s surprise announced on Wednesday for the temporary purchase of long-term gilts at whatever scale is necessary to shore up the British pound, has led to speculation the ECB may use some of their tools to prop up the Euro which has added further support.
The European Central Bank is also expected to continue rising rates further as inflation remains at decade highs and the case was further boosted after yesterday’s release of Consumer Price Index figures from Germany which hit the market well above expectations and it was the first time in 7 decades the number reached 2 digits.
As was mentioned earlier, a huge range of news is expected to hit the market today from both the Eurozone and the US which will have a marked impact on the EUR/USD currency pair.
First up we will see the release of the latest retail sales figures and the latest unemployment rate from Germany, Europe’s largest economy.
That will be followed up by The Euro Zone HICP released by the Eurostat which captures the changes in the price of goods and services and is a significant way to measure changes in purchasing trends and inflation in the Euro Zone.