EURUSD pair gains ground around the 1.0880 ahead of German GDP statistics.
The EURUSD pair gains ground around the 1.0880 level as the European session begins on Monday. Market players are waiting for the German Producer Price Index (PPI) to be released later in the day. The monthly figure for July is predicted to climb by 0.2%, while the annual total will fall by 5.1%.
The lowering Eurozone inflation figures reduced the pressure on the European Central Bank to continue raising interest rates.
The preliminary Eurozone GDP was released last week. During the second quarter came in at 0.3% and 0.6% year on year, respectively, meeting estimates. Meanwhile, Eurozone Industrial Production increased 0.5% month on month in June, compared to -0.1% market estimate and 0.0% before. The monthly Industrial Output figures increased by 0.5% vs a 0.1% loss predicted. Finally, the annual Harmonized Index of Consumer Prices for July was 5.3%, down from 5.5% the previous month, while the core number stayed unchanged at 5.5%, as predicted.
According to Eurostat statistics issued on Friday, declining Eurozone inflationary pressure relieves pressure on the European Central Bank to continue raising interest rates. As a result, the Euro loses ground versus its rivals, creating a headwind for the EUR/USD.
Despite positive US statistics, investors increase their wagers on additional Federal Reserve (Fed) rate rises.
Across the Atlantic, EURUSD investors are increasing their wagers onDespite strong labor statistics and lower inflation data, the Federal Reserve (Fed) raised interest rates again. Investors will, however, take cues from Federal Reserve (Fed) Chairman Jerome Powell’s speech on Friday.
The speech might give hints about economic circumstances and indicate whether inflation is under control or whether more interest rate rises are needed to keep inflation under control.
EURUSD traders are anticipating German PPI data, with Fed Chairman Jerome Powell speaking this week as the headline.
EURUSD Market participants are looking forward to the German Producer Price Index (PPI) data later in the European session.
On Tuesday, the US Existing Home Sales Change MoM for July will be revealed. In addition, the S&P PMI statistics from the Eurozone and the United States remain important.
Market participants will turn their attention to Fed Chair Powell’s speech on Friday. This incident may cause volatility. in the market and provide a clear direction for the EURUSD pair
