Eurozone Inflation Data Impacts Currency Pairs and Central Bank Actions
2 July 2024, 11:06
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Eurozone inflation data came in as expected, with the Eurozone Preliminary HICP inflation falling to 2.5% YoY in June. This news has led to some volatility in the EUR/USD pair, with UOB Group forecasting a potential fall to 1.0680 if the pair breaks below 1.0710.
On the other hand, the GBP/USD pair is currently trading within a tight range between 1.2615 and 1.2680, with UOB Group indicating that a breakout from this zone is necessary for a clearer trading direction.
In terms of central bank actions, ECB officials have hinted at the possibility of rate cuts before year-end, with ECB's Centeno emphasizing that every meeting is open for a decision. This news has also impacted the EUR/USD pair, which has seen a slight decline in response.
Meanwhile, WTI crude oil prices have surged above $83.00 on the back of expected summer demand, while gold remains range-bound but with bullish long-term prospects.
Overall, traders should monitor the upcoming events, such as Powell's speech and further Eurozone inflation data, as they could provide additional insights into the market direction for the EUR/USD and other related currency pairs.
Learn about my trading tools: https://www.mql5.com/en/users/philip.edits/seller
On the other hand, the GBP/USD pair is currently trading within a tight range between 1.2615 and 1.2680, with UOB Group indicating that a breakout from this zone is necessary for a clearer trading direction.
In terms of central bank actions, ECB officials have hinted at the possibility of rate cuts before year-end, with ECB's Centeno emphasizing that every meeting is open for a decision. This news has also impacted the EUR/USD pair, which has seen a slight decline in response.
Meanwhile, WTI crude oil prices have surged above $83.00 on the back of expected summer demand, while gold remains range-bound but with bullish long-term prospects.
Overall, traders should monitor the upcoming events, such as Powell's speech and further Eurozone inflation data, as they could provide additional insights into the market direction for the EUR/USD and other related currency pairs.
Learn about my trading tools: https://www.mql5.com/en/users/philip.edits/seller
