EURUSD Insight
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Last week, the U.S. Producer Price Index (PPI) for September was released, coming in below expectations. The September PPI remained flat at 0.0% month-on-month, while the core PPI rose by 0.1%, falling short of the 0.2% forecasted by the market. As a result, concerns over inflation, which had been heightened by the previously released September CPI, were somewhat alleviated by the PPI. This has strengthened the market's expectation for a 25-basis-point rate cut at the November FOMC meeting.
Meanwhile, the Eurozone Manufacturing PMI remained in contraction territory at 44.8, below market expectations, further reinforcing the likelihood of a rate cut in October. Additionally, the Eurozone CPI showed a faster-than-expected decline in inflation, coming in at 1.8%, which has also fueled rate cut expectations.
Upcoming key dates:
- October 16: UK September Consumer Price Index (CPI)
- October 17: Eurozone September CPI, ECB rate decision, U.S. September Retail Sales
The EUR/USD pair is forming a short-term upward trend, but it has recently broken through the central trendline, suggesting a decline towards the lower trendline. As seen in the chart, a drop to the 1.08000 level is expected, followed by a rebound that could push the pair up to the 1.14000 level. However, with the ECB leaning towards monetary easing and rate cuts, we will keep a close eye on the possibility of the pair breaking below the 1.08000 level.
If unexpected movements occur, we will quickly adjust our strategy.
Please feel free to share your personal opinions in the comments. Don’t forget to like and subscribe!
Last week, the U.S. Producer Price Index (PPI) for September was released, coming in below expectations. The September PPI remained flat at 0.0% month-on-month, while the core PPI rose by 0.1%, falling short of the 0.2% forecasted by the market. As a result, concerns over inflation, which had been heightened by the previously released September CPI, were somewhat alleviated by the PPI. This has strengthened the market's expectation for a 25-basis-point rate cut at the November FOMC meeting.
Meanwhile, the Eurozone Manufacturing PMI remained in contraction territory at 44.8, below market expectations, further reinforcing the likelihood of a rate cut in October. Additionally, the Eurozone CPI showed a faster-than-expected decline in inflation, coming in at 1.8%, which has also fueled rate cut expectations.
Upcoming key dates:
- October 16: UK September Consumer Price Index (CPI)
- October 17: Eurozone September CPI, ECB rate decision, U.S. September Retail Sales
The EUR/USD pair is forming a short-term upward trend, but it has recently broken through the central trendline, suggesting a decline towards the lower trendline. As seen in the chart, a drop to the 1.08000 level is expected, followed by a rebound that could push the pair up to the 1.14000 level. However, with the ECB leaning towards monetary easing and rate cuts, we will keep a close eye on the possibility of the pair breaking below the 1.08000 level.
If unexpected movements occur, we will quickly adjust our strategy.
네이버 카페 :
cafe.naver.com/autumnis
오픈 카톡방 :
pf.kakao.com/_txlKqxj/chat
텔레그램 :
t.me/shawntimemanager
cafe.naver.com/autumnis
오픈 카톡방 :
pf.kakao.com/_txlKqxj/chat
텔레그램 :
t.me/shawntimemanager
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