All Eyes on Preliminary European Consumer Price Index Results

All Eyes on Preliminary European Consumer Price Index Results

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 on the daily chart remains intact, the strength of the rebound is gradually increasing, so we will be watching closely to see how far the pair can extend its gains.

European currencies edged higher against the U.S. dollar, with the pound 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 pounds. During today’s Asian trading session, the GBP/USD pair has resumed its downward trend.

Today, during Asian trading hours at 15:45, France’s fiscal balance will be released; during European trading hours at 16:00, Turkey’s manufacturing PMI; at 16:30, Switzerland’s manufacturing PMI; at 16:55, Germany’s manufacturing PMI; at 17:30, the UK’s manufacturing PMI;UK mortgage approvals at 18:00, and the Eurozone Consumer Price Index at 18:00; during U.S. trading hours, the U.S. Manufacturing PMI is scheduled for 22:45, followed by the U.S. ISM Manufacturing Index and U.S. Construction Spending at 23:00.We will carefully assess whether today’s release of the Eurozone Consumer Price Index will affect the euro, which has rebounded.