EURUSD is having a big week ahead. The pair will have plenty of chances and opportunities to move on including FOMC minutes (Wednesday, 7:00 pm GMT), ECB minutes (Thursday, 12:30 pm GMT) as well as flash PMIs for November from Europe and the United States (Wednesday). Policy statement from the last Fed meeting was quite dovish but was followed by a very hawkish press conference from Fed Chair Powell. Latest ECB meeting saw the introduction of changes to the TLTRO programme and generally was a rather hawkish one. While it won't be reflected in minutes, it should be noted that German PPI inflation decelerated significantly in October, boosting hopes that inflation has already peaked in Europe's largest economy.
Taking a look at EURUSD, we can see that the pair continues to pull back after peaking slightly below 1.05 handle last week. Main currency pair broke back below the price zone ranging between 38.2% retracement of the downward move launched in mid-January 2022 and 1.0360 handle, and is making a break below the 200-session moving average (purple line) this morning. Much lower-than-expected PPI reading from Germany signals that ECB's tightening cycle may end sooner.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
