EURUSD pair is trading comfortably above the psychological barrier level of 1.1000.
In the Asian session, the EURUSD pair is trading comfortably above the psychological barrier level of 1.1000. The main currency pair has gained tremendous momentum as the US Dollar Index (DXY) has extended its three-day losing streak.
In Tokyo, S&P 500 futures have added nominal gains. On Monday, US shares were moderately purchased, indicating positive market sentiment. Despite the possibilities, the USD Index has returned to its two-month low of 101.74. Being robust to one more interest rate rises from the Federal Reserve (Fed) in July. According to the CME Fed watch tool, there is a 92% possibility of a 25-basis point (bp). Interest rate rise, which would raise rates to 5.25-5.50%.
The US Dollar Index is under significant pressure as the Fed’s interest rate rise in July might be the final nail in the coffin.
The US Dollar Index is under significant pressure. As Fed Chair Jerome Powell’s interest rate rise in July might be the final nail. In the coffin as tight labor market conditions release heat and inflationary pressures steadily decrease.
The Consumer Price Index (CPI) figures for the United States on Wednesday will be closely scrutinized in the coming days. According to the preliminary data, the monthly headline CPI increased at a faster rate of 0.3% compared to the previous rate of 0.1%. In addition, core inflation, which excludes energy and food, Prices are projected to keep pace with the headline CPI.
Inflationary pressures in Germany are much stronger than in other countries on the old continent.
In the Eurozone, investors are looking forward to the final reading of German inflation statistics. Inflationary pressures in Germany are much stronger than in other countries on the old continent, which increases the likelihood of additional policy tightening by the European Central Bank (ECB).
“Eurozone rates will soon reach their high point,” said ECB Governing Council member Francois Villeroy de Galhau over the weekend, “but it will be more of a high plateau than a peak.”
