In a time when leading global economies are keeping their refinancing rates to a minimum the importance of boosting the inflation comes to the forefront. Members of the ECB have lowered the rates to a zero, which had a positive effect on inflation and it’s growing slowly but steadily.
CPI of Eurozone is still close to the zero-level:
US CPI numbers are somewhat better, but they still fail to get close to the target level:
..so even a small CPI increase will have a positive impact on national currencies of these countries:
In the beginning of August Eurozone Retail Sales report (June) was published and the numbers were insignificantly lower than the forecast so it did not have almost any impact on the value of European currency:
In the beginning of August Eurozone Retail Sales report (June) was published and the numbers were insignificantly lower than the forecast so it did not have almost any impact on the value of European currency:
..same story with US PPI and Retail Sales data:
Overall, both EU and US are developing steadily. EU GDP growth is on a decent level for developed economies:
..while US labor market data is still outstanding:
Experts believe that there are some risks for the Eurozone economy due to the “Brexit” process while US risks and uncertainty are based on US president elections as these are edging closer to the final period. That is why the rate can show some unexpected moves on the price chart from time to time.
EURUSD chart:
EURUSD chart:
There is a flat rate movement on EURUSD D1 chart and indicator of technical analysis “Relative Strength Index” proves this. That is why it is very important to consider lines of support and resistance which are highlighted with yellow colors on the price chart above.
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