EURUSD reached stability. Overview for 01.09.2021

The major currency pair retreated a little bit and intends to wait for the news. 

The Euro stopped growing in the middle of the week and is trying to fix at the current levels. The current quote for the instrument is 1.1800.

The statistics published yesterday showed that the CPI in the Euro Area was 3.0% y/y in August, which is better than both previous and expected readings of 2.2% y/y and 2.7% y/y respectively. The Core CPI also improved and showed 1.6% y/y after being 0.7% y/y in July. 

As a result, the current CPI value is the highest over the last 10 years and may probably increase further. The inflation boost may force the European Central Bank to revise its stance on the pricing environment and pay more attention to it. 

The key triggers for the inflation boost in August were increasing prices for electricity and food products. Non-grocery goods also jumped. 

Now, it would be interesting to see the ECB’s inflation forecasts. In the past, they were going up slowly bt only to avoid scaring everyone with final readings. 

There is an opinion that the inflation boost in the Euro Area may calm down in November or December 2021. 

The Conference Board Consumer Confidence in the USA dropped to 113.8 points in August after being 125.1 points in July. It also didn’t make the “greenback” happy or more optimistic. 

Later today, one should pay attention to the Unemployment Rate in the Euro Area for July. In the evening, the USA is going to publish the first report on its labour market, the ADP Non-Farm Employment Change.