Oct 04, 2022
VOT Research Desk
Analytical Viewpoint EUR/USD
Despite the Eurozone’s weaker-than-expected manufacturing PMI, the EURUSD is increasing its gains from the previous day.
The RBA’s smaller-than-expected rate increase has raised hopes that global central banks may soon scale down their aggressive rate increases.
Softer than anticipated The US economy appears to be stalling, according to yesterday’s ISM manufacturing report, which gives rise to optimism that the Fed would hold off on raising interest rates. Treasury yields decreased and are still decreasing today.
Now the focus is on the Eurozone PPI, which is predicted to increase in August to 43.2% YoY from 37.9%. Pressure to raise rates is increasing due to hot inflation. Laggard from the ECB will talk later.
In the meanwhile, US JOLTS manufacturer orders and job vacancies are expected. There will also be a spotlight on certain Federal Reserve speakers.
The EURUSD has risen above the falling trend line barrier since its bottom of 0.9535 in 2022, which, along with the bullish MACD crossover, gives buyers hope for additional increases.Buyers will attempt to move over the 20 SMA at 0.9890 in order to restore parity to the desired level.
A sliding trend line at 0.98 provides support before yesterday’s low of 0.9750.
