EUR keeps hitting new highs. Overview for 14.07.2023
The major currency pair still appears very strong by Friday. The current EURUSD quote is 1.1240.
The euro has been rising for seven days straight. The most traded currency pair looks seriously overbought, but the bulls still have a lot of strength.
The rally was mostly triggered by the US statistics: first on the employment market for June and then on inflation. On the whole, they gave reason to believe that the US Federal Reserve would raise the interest rate by 25 basis points at its July meeting and stop here. The level of 5.50% per annum looks restrictive for the financial system and economy. The economy is dealing well with tight credit conditions, but given that inflation retreats, it is important to stop at the right time.
The US statistics on the producer price index released yesterday confirmed the general downward trend in inflationary pressure.
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