This coming week will have US CPI and PPI announcements while from the Europe side, there will be an interest rate decision from European Central Bank(ECB). Let’s review EURUSD and have a game plan for this upcoming announcement.
This coming week will be an interesting and volatile week as both US Federal Reserve and European Central Bank (ECB) will announce their interest rate decision in the same week. In addition to that, Europe will also release its GDP, CPI, and inflation rate economic data.
This coming week will be a very interesting (or we should say a volatile week) week for EURUSD as there are many important economic announcements scheduled in the coming week as follows
It is time for us to be cautious again for the EURUSD market.
Last week, FOMC raised the interest rate by 0.75% as expected and the stock market was rally after the interest rate announcement, but then the market turn bearish again after Powell’s speech. Powell has turned down the market’s hope of slowing interest rate hikes and the USD turned strong before Friday.
Last week, European Central Bank (ECB) raised the interest rate by 0.75% as per expected but Canada’s Central Bank, which is just next to the United States surprisingly raised its interest rate by 0.5% only, against the consensus of 0.75%. What will FOMC do in this coming Interest Rate Decision on 2 Nov 2022?
There is no FOMC meeting on Oct but European Central Bank’s(ECB) Interest Rate Decision is coming this week on 27 Oct 2022.
After ECB raised 0.75% of the interest rate last two weeks, this week is US Federal Reserve‘s turn to raise interest.
EURUSD started to drop again last week and it seems to be in the process to retest the 52-week low of 0.9952. Jackson Hole Meeting, the annual global central banking conference is coming this in this Thursday 25 Aug till the weekend of next week.
EURUSD now is at a level that we have never seen before since 2003. We saw a few moments when EUR is lower than USD last week.
This week there will be a European Central Bank (ECB) Interest Rate Decision announcement on 21 Jul and next week there will be an FOMC Interest Rate Decision and Press Conference on 27 Jul.
The next FOMC Interest Decision and Press Conference will be held on 14-15 Jun 2022.
As you can see on the market yesterday, US CPI data for May was unexpectedly rise to 8.6% year over year while the market consensus is only 8.3%. There is no obvious sign that US inflation is under control although multiple rate hikes of 0.5% for the next few FOMC meetings are the market consensus at the moment. There are also some analysts that are predicting CPI next month might be as high as 9%.