The EUR/USD pair remains on a strong upward trajectory.
As we approach Friday, the major currency pair continues to exhibit significant strength. The current quote for EUR/USD stands at 1.1240.
Euro has been experiencing a continuous ascent for seven consecutive days. Despite appearing overbought, the primary currency pair still demonstrates considerable bullish momentum.
The catalyst behind this rally has primarily been the release of US economic statistics, particularly concerning employment in June and inflation. Collectively, these figures have provided sufficient grounds to anticipate a 25 basis points interest rate hike by the US Federal Reserve during its upcoming July meeting, followed by a halt. The 5.50% annual level appears restrictive for both the financial system and the overall economy. While the economy has managed to navigate stringent credit conditions effectively, it is crucial to act prudently as inflation recedes.
The recently published US statistics on the producer price index have further validated the overarching trend of decreasing inflationary pressures.
Amid such a confident market sentiment, weak reports from the Eurozone seem to have evaded market scrutiny. The region’s industrial production recorded a modest 0.2% month-on-month increase in May, compared to a 1.0% increase observed the previous month. On an annual basis, the indicator continues to decline. As inflation remains high, the economy is compelled to curtail production parameters, given the diminishing profitability.
Consequently, investors remain singularly focused on the Federal Reserve’s actions, with only 12 days remaining until the next regulatory meeting.
The post EUR Continues to Surge to New Highs – Overview for July 14, 2023 appeared first at R Blog – RoboForex.
