KEY GRAPHIC ELEMENTS
Traders are expected to see volatility in the foreign exchange market as the US Gross Domestic Product (GDP) is due this afternoon in addition to weekly jobless claims. This information is important now that the Fed believes that the work is almost done regarding inflation, it will monitor the labor market and growth in the US economy more closely. In Europe this morning, the inflation figure for Spain was published, which continues to slow, reinforcing the European Central Bank (ECB) in its easing. This news, however, is causing the euro to fall in the very short term. Spanish inflation had reached a record 10.8% after Russia invaded Ukraine in early 2022, it is now moving close to 2%. The prospect of a US rate cut next month has caused the dollar to fall so far, but traders now want to know the Fed’s trajectory for the coming months before going further. The dollar has been strengthening in recent hours following reports that the US Federal Reserve announced it had subjected major banks to annual stress tests and agreed to reduce the burden on Goldman Sachs.
Technical Section: The European currency continues to consolidate. As anticipated, it is returning to contact with the 20-period daily moving average. We will monitor reactions on support to get back in the direction of the upward trend.
MEDIUM TERM FORECAST
Considering the key graphic factors that we have mentioned, our opinion is neutral in the medium term on the Euro Dollar (EURUSD) parity.
We will maintain this neutral opinion as long as the Euro Dollar (EURUSD) parity rates are positioned between the support at 1.1069 USD and the resistance at 1.1134 USD.
The News Bulletin 247 council
DAILY DATA CHART
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