EURUSD will need stamina. Overview for 14.12.2022
On Wednesday, the currency major is waiting for the Fed’s decision. The current quote is 1.0630. Yesterday EURUSD went through a real rally, and for a serious reason.
The US published the CPI for November, and these statistics surprised investors and economists. Inflation dropped to 7.1% y/y from 7.7% previously, while the forecast result had been 7.3%. The CPI minus food and energy carriers amounted to 6.0% y/y.
So, inflation came out smaller than forecast. This gave the Fed maximum reasons for softening its credit and monetary policy. The meeting of the regulator will end this evening. Curiously, at the beginning of the week, the expectations of the CME suggested a 91% probability of an increase in the interest rate by 50 base points, while yesterday this probability dropped to 72.3%. The market thus considers different options but counts on prudence and reason.
Most probably, the interest rate today will be lifted to 4.50% yearly. The main market reactions have been already accounted for in the quotes but anyway there will be plenty of emotions.
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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