Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Euro Falls As Inflation Jumps

By MarketPulse (Kenny Fisher)ForexSep 30, 2022 08:05AM ET
www.investing.com/analysis/euro-falls-as-inflation-jumps-200630505
Euro Falls As Inflation Jumps
By MarketPulse (Kenny Fisher)   |  Sep 30, 2022 08:05AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
EUR/USD
0.04%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

The euro is showing limited movement today, after a two-day rally. In the European session, EUR/USD is trading at 0.9759, down 0.55%.

It has been a week of swings for the euro, which has traded in a 300-point range. The euro has been under strong pressure, and is down 2.5% in September, as the euro continues to drop further away from the psychologically-important parity line.

Eurozone inflation hits 10%

The number 10 is not at all pretty when referring to inflation, but that is today’s story, as eurozone CPI jumped to 10.0% in August, up from 9.1% in July and above the consensus of 9.7%. This is the highest rate ever recorded since the euro was introduced back in 1999. Inflation is well supported, as all broad categories reflected price increases, and core inflation rose to 4.8%, up from 4.3% and higher than the 4.7% estimate. Germany, the powerhouse of the bloc, saw inflation accelerate even higher, to 10.9%.

The chief driver of soaring inflation is energy prices, which have skyrocketed as Russia has sharply reduced energy exports to Europe. The latest ominous development was a series of explosions at the Nord Stream pipelines this week. Although the pipeline system had already been shut down, the explosions, which were likely sabotage, have sent natural gas prices even higher.

The ECB showed up very late to the rate-tightening dance, and the current benchmark rate of 1.25% lags behind other central banks and will not have much impact on soaring inflation. The central bank appears to have little choice other than to deliver a second-straight rate increase of 0.75% at the October meeting.

With eurozone inflation hitting double digits and showing no sign of peaking, it is no surprise that confidence levels are sinking among consumers and businesses. The European Commission economic sentiment index slipped to 93.7 in September, down from 97.3 in August. German GfK Consumer Confidence fell to -42.5 in September, down from -36.8 in August, and lower than the consensus of -39.0 points. The economic picture in the eurozone is bleak, and the ailing euro will be hard-pressed to make any headway against the surging US dollar.

EUR/USD Daily Chart
EUR/USD Daily Chart

EUR/USD Technical

  • EUR/USD is testing support at 0.9554. Next, there is support at 0.9419
  • There is resistance at 0.9640 and 0.9711

Original Post

Euro Falls As Inflation Jumps
 

Related Articles

Shane Neagle
Has the U.S. Dollar Officially Peaked? By Shane Neagle - Nov 29, 2022 4

The U.S. dollar is trading near multi-month lows against its major counterparts on expectations the Federal Reserve may slow down its hiking campaign. The pullback in the dollar...

Kenny Fisher
Yen Extends Gains By Kenny Fisher - Nov 29, 2022 2

The yen is in positive territory for a second straight day. In the North American session, USD/JPY is trading at 138.60, down 0.23%. Earlier, in the day the yen pushed below the...

Al Brooks
EUR/USD Stalls at the 2017 Low By Al Brooks - Nov 29, 2022 4

Al Br The EUR/USD is continuing to stall at the 2017 low. While the bulls had a strong breakout with follow-through on November 10 and 11, the market has been sideways for 12 bars...

Euro Falls As Inflation Jumps

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email