EURUSD is looking strong. Overview for 13.07.2021
EURUSD is saving strengths before the inflation report from the USA.
The major currency pair is stable on Tuesday afternoon. The current quote for the instrument is 1.1838.
American stock indices updated their all-time highs yesterday; risk attitude is quite high. In this light, the demand for the “safe greenback” reduced.
However, there is one factor that prevents the USD from weakening too much: an upsurge in new coronavirus cases. Market players realise that they may require “safe haven” assets at any moment.
The key highlight of today’s trading session is the June inflation report to be published by the USA. the indicator is expected to show 0.5% m/m after being 0.6% m/m the month before. On YoY, the report may show 4.0%. The Core CPI is expected to be 0.4% m/m after showing 0.7% m/m in May.
Strong data on the CPI may quickly revive discussions among investors about more decisive measures from the US Federal Reserve to wind up its stimulus programs and raise the benchmark interest rate. It may support the USD. However, one should admit that there are no real grounds for that.
Investors’ oversensitivity to any hints at possible cuts in the QE program may really make the market volatility skyrocket in no 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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