EUR/USD balances below 1.0540 ahead of US Inflation and ECB’s Lagarde.

EUR/USD is sustaining below 1.0540 amid anxiety over the US Inflation release.

Fed’s Mester believes that the Fed won’t stop interest rate hikes till it finds a compelling plunge in inflation.

ECB’s Lagarde may dictate over concluding the APP and growth rate amid the Ukraine crisis.The EUR/USD pair is displaying back and forth moves in a narrow range of 1.0526-1.0538 in the Asian session. The greenback bulls are frozen now as investors are preferring to remain on the sidelines amid anxiety over the release of the US inflation.

The mega event of the US Consumer Price Index (CPI) will release today and investors are seeing yearly inflation on the lower side. A preliminary estimate of 8.1% against the prior print of 8.5% is very much lucrative for the Federal Reserve (Fed). However, the deviation between the targeted inflation of 2% and inflation forecasts is extremely wider. This will continue to haunt the US economy as elevated price pressures will continuously reduce the real income of the households. The core CPI that excludes food and energy prices is seen at 6%, lower than the former release of 6.5%.

Meanwhile, the US dollar index (DXY) has tumbled to near 103.83 after a long consolidation in the early Tokyo session. The comments from Cleveland Fed President Loretta Mester have bolstered the fact that the Fed won’t get softer on interest rates sooner. Fed policymaker believes that the central bank won’t stop until it finds a ‘compelling’ slippage in inflation numbers.

On the euro front, the speech from European Central Bank (ECB) President Christine Lagarde will remain in focus. ECB Lagarde may dictate the roadmap for concluding the Asset Purchase Program (APP) in the third quarter of this year. Apart from that, the speech will put some light on the employment numbers and growth rate of the eurozone.

AUD/USD clings to recovery gains around 0.6950 on Chinese inflation beat

AUD/USD bulls remain in control around the 0.6950 level on the above-estimates Chinese consumer and producer price inflation data, reflecting higher prices amid the country’s covid lockdowns-led supply chain issues. The American dollar holds higher ground ahead of the US inflation.

AUD/USD News 

EUR/USD balances below 1.0540 ahead of US Inflation and ECB’s Lagarde

The EUR/USD pair is displaying back and forth moves in a narrow range of 1.0526-1.0538 in the Asian session. The greenback bulls are frozen now as investors are preferring to remain on the sidelines amid anxiety over the release of the US inflation.

EUR/USD News 

Gold rebounds towards $1,850 as DXY eases ahead of US inflation

Gold prices recover from the lowest since February as markets brace for the all-important US inflation data during early Wednesday. The metal’s latest run-up to refresh the intraday to $1,838 takes clues from the slightly positive stock futures and China data.

Gold News 

Why Shiba Inu price could sneak in a 35% rally amid the bearish market sentiment

Shiba Inu price shows the formation of an initial range that could allow investors an opportunity to accumulate. After a bounce off stable support levels, the emerging rally is likely to push SHIB beyond the range high.

Leave a Comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s