EURUSD has been on a rally this past week whilst DXY has seen losses.
This week's US Non Farm Payroll did come out positive. However the US Unemployment Rate missed its target by 0.1.
On Thursday 11 July we are expecting:
Core CPI m/m
CPI m/m
CPI y/y
Unemployment Claims
If the data for next week comes out strong, we can see EURUSD decline.
Interest Rates:
The European Central Bank (ECB) cut rates from 4.5% to 4.25% on 6 June 2024. Current Euro Area inflation rate sits at 2.6%. Real Interest Rate = 4.25% - 2.6% = 1.65%.
The Federal Reserve decided not to cut or raise rates on 12 June 2024. The current rate sits at 5.5%. Current US inflation sits at 3.3%. Real Interest Rate = 5.5% - 3.3% = 2.2%.
ECB Real Interest Rate (1.65%) is lower than the Federal Reserve Real Interest Rate (2.2%). Therefore, USD gains out perform that of the EUR over the longer term.
This week's US Non Farm Payroll did come out positive. However the US Unemployment Rate missed its target by 0.1.
On Thursday 11 July we are expecting:
Core CPI m/m
CPI m/m
CPI y/y
Unemployment Claims
If the data for next week comes out strong, we can see EURUSD decline.
Interest Rates:
The European Central Bank (ECB) cut rates from 4.5% to 4.25% on 6 June 2024. Current Euro Area inflation rate sits at 2.6%. Real Interest Rate = 4.25% - 2.6% = 1.65%.
The Federal Reserve decided not to cut or raise rates on 12 June 2024. The current rate sits at 5.5%. Current US inflation sits at 3.3%. Real Interest Rate = 5.5% - 3.3% = 2.2%.
ECB Real Interest Rate (1.65%) is lower than the Federal Reserve Real Interest Rate (2.2%). Therefore, USD gains out perform that of the EUR over the longer term.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.