Solid News

EURUSD Analysts Expect a New Inflation Cycle in the EU

2/9/2023 12:00 PM

Against poor macroeconomic statistics, the EUR/USD pair is moving in a corrective trend at 1.0730.

German industrial production lost 3.1% in December after rising 0.4% last month. Analysts expected a significant drop in retail sales in Italy by 0.8%, but the figure corrected only by –0.2% at the end of the year – up to 3.4% from 4.4%. Today, investors expect the publication of data on the German consumer price index in January: preliminary estimates suggest an acceleration in inflation to 8.9% from 8.6% earlier. The active dynamics in the asset could not be stopped by the increase in the interest rate of the European Central Bank (ECB) last week by 50.0 basis points, which indicates the unstable state of the German economy.

In turn, the USD Index is holding around 103.200 due to the lack of macroeconomic publications. Yesterday, investors' attention was drawn only to the rate on 30-year mortgage loans from the Mortgage Lending Association (MBA), which slightly decreased to 6.18% from 6.19% earlier, which had almost no effect on the market.

On the daily chart, the trading instrument continues its corrective movement, declining towards the support line of the ascending corridor.

Technical indicators are preparing a full downward reversal: fast EMAs on the Alligator indicator are approaching the signal line, and the AO histogram forms downward bars, reaching transition levels.

Resistance levels: 1.0800, 1.0990. | Support levels: 1.0670, 1.0520.

Find Us
Registered Address : Bonovo Road – Fomboni Island of Mohéli – Comoros Union
Sofia, PO Box 1407,14 Flip Kutev Str. Floor 2, Industrial area Hladilnika, Bulgaria
Call Us
+35 924 928 392

Risk Warnings
Solid ECN Securities LLC offers trading on Foreign Exchange (‘Forex’ or ‘FX’) and Contracts for Difference (‘CFDs’), which are complex financial products that are traded on margin. They carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, these products may not be suitable for all investors, as loss of all invested capital may occur. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and consider your investment objectives and level of experience. Seek independent advice, if necessary.
Solid ECN Securities LLC does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. Solid ECN Securities LLC is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
By using you agree to use our cookies to enhance your experience.
Solid ECN Securities LLC is authorized and regulated by the Comoros Union with reference number HY00623411.
Disclaimer 1: The information provided on this site is not intended for residents of any country or jurisdiction where its distribution or use would violate local laws or regulations.
Disclaimer 2: Solid ECN Securities LLC and it affiliates does not provide services to residents of the USA, Japan, Canada, Australia, the Democratic Republic of Korea, European Union, United Kingdom, Iran, Syria, Sudan and Cuba.
Copyright All Right Reserved 2024