The EUR\/USD has run up high in a short squeeze as traders look ahead to US CPI for clues concerning the future path of the US economy.
The EUR\/USD has been testing a critical high in the midday session on Wall Street following what had been a positive start for the day for the US dollar. At the time of writing, the EUR\/USD pair is trading up high for the day at 1.0719 and has gained 0.4% so far following a rally from the Asian lows of 1.0655 within a 93 pip.
Fundamentally, it’s all about the Fed and positing in front of the key data event for the week ahead in the United States of America’s Consumer Price Index with Retail Sales as a sideshow the following day. There are mixed outlooks for the CPI data with some analysts anticipating a hawkish outcome while others a dovish one.
Federal Reserve speakers have already been out of the gate this week with hawkish rhetoric. Fed Governor Michelle Bowman said the following:
“I expect we’ll continue to increase the federal funds rate because we have to bring inflation back down to our 2% goal and in order to do that we need to bring demand and supply into better balance,” Bowman said during an American Bankers Association conference in Florida.
Once at a sufficiently restrictive level, interest rates will then need to be held for “some time” to restore price stability, she added.
Bowman rounded off by saying that a very strong labour market alongside moderating inflation meant a so-called economic ‘soft landing’ remains possible.<\/p>\n","protected":false},"excerpt":{"rendered":"
The EUR\/USD has run up high in a short squeeze as traders look ahead to US CPI for clues concerning the future path of the US economy. The EUR\/USD has been testing a critical high in the midday session on Wall Street following what had been a positive start for the day for the US …<\/p>\n","protected":false},"author":13,"featured_media":77027,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[7987,6885,9332],"class_list":["post-79881","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-cpi-data","tag-fed","tag-michelle-bowman"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/79881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=79881"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/79881\/revisions"}],"predecessor-version":[{"id":79885,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/79881\/revisions\/79885"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/77027"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=79881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=79881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=79881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}