The main currency pair is rising on Friday, but it’s too early for the Euro to be happy.
The EUR/USD pair continues getting more expensive of Friday afternoon. The current quote for the pair is 1.1109.
The market has already “digested” the results of the FOMC meeting. Taking into account that nothing, except for the tone of Janet Yellen’s comments, changed this time as well, investors decided not to focus on it. The statistics published today indicated that the unemployment rate in the Eurozone in June remained the same as in the previous month, at 10.1%. According to the preliminary calculations, the CPI in the region in July increased by 0.2% y/y against the predicted number of 0.1% y/y. The core inflation in the Eurozone in July increased by 0.9% y/y against the predicted increase of 0.8% y/y.
Recovery of inflationary pressure is a god signal. However, right now Europe is full of tourists, who contribute to this without any efforts on the part of the ECB. But, before being happy about strong statistics, we should wait for the autumn and see the indicator without the seasonal factor. Also, today the Eurozone provided the GDP calculations over the second quarter, which indicate that the region’s economy expanded by 0.3% q/q (+1.6% y/y). The quarterly number matched the expected one, and the yearly number turned out to be better.
It’s highly likely that good reports, which are unusually positive for the Eurozone, are the result of the QE program implemented by the ECB. It would be logical. However, one shouldn’t rely upon the steady positive trend too much: there are too much “weak spots” in the European economy.
RoboForex Analytical Department
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