EURUSD Key event – US Inflation Report (May 17th 15:30 GMT +3)

Having received the disappointing data on the US labor market earlier this month, the traders are now fixated on the US Inflation Report. Should these results turn out to be underwhelming as well, no Interest rate hike should be expected, which in turn will depreciate the US dollar.

Despite the fact that a minor CPI increase is expected it is quite possible that this will not happen due to weak data from the labor market and some other economic statistics.

What is more, there are less and less market participants who believe that US Federal Reserve representatives will decide to hike the rate on the next meeting, which will be held in June. It was planned to hike the rate four times in 2016, but so far rate change is yet to happen.

EURUSD chart:

Lower line of an up-trend was broken on EURUSD D1 chart. But traders have to be accurate, as it might be a fake breakthrough as the indicator of technical analysis “Stochastic” is showing that the rate is getting closer to the oversold area and the rate turnaround movement might follow soon.

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