All eyes on the preliminary results of the European Consumer Price Index

All Eyes on the Preliminary Results of the Eurozone Consumer Price Index

01.07.2022

The previous day, the U.S. dollar traded weaker against both the euro and the yen, while the EUR/USD pair rose by about 100 pips from 1.038 to 1.048.The EUR/USD pair had been falling after breaking below the upward channel on the hourly chart, but it rebounded at the recent low of 1.038 and staged a sharp reversal higher. Although the downtrend remains intact on the daily chart, the strength of the rebound is gradually increasing, so we will be watching closely to see how far it extends.

European currencies edged higher against the U.S. dollar, with GBP/USD rising slightly from 1.209 to 1.218. The UK’s first-quarter real GDP, released yesterday, came in at 0.8%, matching both market expectations and the previous reading. However, the current account deficit widened in the first quarter to £51.7 billion. During today’s Asian trading session, GBP/USD has resumed its downward trend.

Today, the French budget balance will be released at 15:45 Asia time, followed by the Turkish Manufacturing PMI at 16:00 European time, the Swiss Manufacturing PMI at 16:30, the German Manufacturing PMI at 16:55, the UK Manufacturing PMI and UK mortgage approvals at 17:30, and the Eurozone, and during U.S. trading hours at 22:45, U.S. Manufacturing PMI, at 23:00, U.S. ISM Manufacturing Index, and U.S. Construction Spending. We will carefully assess whether the euro, which has rebounded, will see any changes following today’s release of the Eurozone Consumer Price Index.