USD is in demand. Overview for 11.05.2023
The decline of the most traded currency pair is accelerating. The current EURUSD quote is 1.0930.
The market is following the inflation reports from the US and China and making interim conclusions.
The US CPI for April came in below expectations at 4.9% y/y. Monthly inflation rose by 0.4% as forecast. The core CPI rose by the same 0.4% m/m. The decrease in inflation pressure made investors believe that the spread between the interest rates of the Federal Reserve System and the European Central Bank might narrow further. This put pressure on the EUR and supported the USD.
One more inflation report that came into the spotlight was from China. Inflation in China is falling, having increased by just 0.1% year-on-year from 0.7% previously.
This statistic heated up concerns over the sustainability of economic growth in China. Investors have started looking for safe-haven assets and turned to the USD.
Overall, today is the kind of day of doubt that happens in stock markets from time to time.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
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