On Wednesday morning, the major currency pair got under pressure amid the US statistics and election race.
EURUSD plunged last night and remains weak on Wednesday morning. The current quote for the instrument is 1.1740.
The data published by the USA yesterday showed that the CPI was 0.2% m/m in September, the same as expected. American inflation has been rising for the fourth consecutive months. Yes, the inflation growth rate has slowed down if compared with pre-crisis numbers but the US economy is currently recovering after serious stress caused by the coronavirus pandemic and any improvements in inflation parameters may complicate this process.
The American currency could have grown much more but market players continue watching the election race in the USA. The political stance of the opponent of the sitting president Donald Trump, Joseph Biden, remains pretty strong and the army of his fans is increasing day by day. Behind the market scenes, they say that Biden’s election victory may boost the economic recovery procedure and set the stage for a rally in both stock and currency markets due to the mending of diplomatic fences with China.
Later today, one should pay attention to the Industrial Production in the Euro Area, which may add 0.8% m/m in August after skyrocketing by 4.1% m/m in July. The stronger the reading, the better for the Euro.
In the evening, the USA is going to report on the PPI and the Core PPI for September. Also, several members of the FOMS are scheduled to speak.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.