The European currency is resisting the growth of the dollar, trading around the 1.0014 mark after the publication of a block of macroeconomic data yesterday.
Thus, consumer prices in the EU in August added 0.5%, which led to an increase in the annual inflation rate to 9.1% from 8.9% (food and energy prices rose the most), while local inflation in countries bloc increased almost everywhere: in Italy, it reached 8.4% from 7.9% a month earlier, and in France, the figure fell to 5.8% instead of 6.1%. Rising consumer prices will require European Central Bank (ECB) officials to continue their "hawkish" policy, and already at the meeting on September 8, the interest rate could be raised immediately by 1.00%.
The American currency in yesterday's trading again renewed the annual maximum around 109.100 in the USD Index after the President of the Federal Reserve Bank of New York, John Williams, in his statement, clarified the "restrictive level of stability" of the interest rate announced by the head of the US Federal Reserve, Jerome Powell. That mark is in the 3.5% region, well above the current rate, Williams said, but experts are now evaluating the likelihood that the agency will want to reach that level in one step at its next meeting on September 21, putting significant pressure on the US economy, which and so is going through a recession.
The trading instrument is kept within the global downward channel, correcting towards the resistance line.
Technical indicators maintain a stable sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram forms downward bars in the sell zone.
Resistance levels: 1.0095, 1.0321. | Support levels: 0.9940, 0.9753.