Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

EUR/USD – Euro Dips To 2-Week Low, Eurozone CPI Hits 2 Percent

By MarketPulse (Kenny Fisher)ForexJul 18, 2018 06:48AM ET
www.investing.com/analysis/eurusd--euro-dips-to-2week-low-eurozone-cpi-hits-2-percent-200331518
EUR/USD – Euro Dips To 2-Week Low, Eurozone CPI Hits 2 Percent
By MarketPulse (Kenny Fisher)   |  Jul 18, 2018 06:48AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

EUR/USD is lower in the Wednesday session, following the downward trend which was seen on Tuesday. Currently, the pair is trading at 1.1619, down 0.37% on the day. The pair is currently at its lowest level since July 2. On the release front, eurozone Final CPI edged up to 2.0%, matching the estimate. Final Core CPI dipped to 0.9%, short of the estimate of 1.1%. The markets are expecting mixed construction numbers – Building Permits are expected to climb to 1.33 million, while Housing Starts are forecast to drop to 1.32 million. Later in the day, Federal Reserve Chair Jerome Powell testifies before the House Financial Services Committee. On Thursday, the US releases the Philly Fed Manufacturing Index and US unemployment claims.

A milestone was reached on Thursday, as eurozone Final CPI reached the 2.0% threshold in the June release. On an annualized basis, Final CPI also came in at 2.0%. This marks the highest level since February 2017. As the ECB prepares to wind up its asset-purchase program, the markets are looking for clues about a possible rate hike. Such a move would likely have a significant impact on the markets, as the ECB last raised rates back in 2011. If inflation levels continue to rise, there will be more pressure on the ECB to consider a rate hike sooner rather than later.

Fed Reserve Chair Jerome Powell reaffirmed his positive outlook on the US economy in testimony before the Senate Banking Committee. Powell said that he expected the labor market to remain tight and inflation to stay close to the Fed’s target of 2 percent for the next several years. Powell added that the Fed would continue to gradually raise interest rates. Lawmakers appeared satisfied with current monetary policy, but Powell did face some pointed questions regarding the escalating trade war, which has raised concerns that the economy could take a downturn if the tariff battles continue.

With global protectionist winds getting stronger by the week, Japan and the EU signed a free trade agreement on Tuesday. At the signing ceremony, Prime Minister Shinzo Abe and European Council head Donald Tusk said that the deal is a response to growing concerns about protectionism. The agreement will eliminate most tariffs between the EU and Japan, and will be particularly beneficial for Japanese car makers and European food producers. No less important, the agreement marks the largest free trade agreement in the world, as the EU and Japan cover about one-third of global GDP and some 600 million people.

EUR/USD Fundamentals

Wednesday (July 18)

  • 5:00 Eurozone Final CPI. Estimate 2.0%. Actual 2.0%
  • 5:00 Eurozone Final Core CPI. Estimate 1.0%. Actual 0.9%
  • Tentative – German 30-year Bond Auction
  • 8:30 US Building Permits. Estimate 1.33M
  • 8:30 US Housing Starts. Estimate 1.32M
  • 10:00 US Federal Reserve Jerome Powell Testifies
  • 10:30 US Crude Oil Inventories
  • 14:00 US Beige Book

Thursday (July 19)

*All release times are DST

*Key events are in bold

EUR/USD for Wednesday, July 18, 2018

EUR/USD for July 18, 2018
EUR/USD for July 18, 2018

EUR/USD for July 17 at 6:30 DST

Open: 1.1662 High: 1.1665 Low: 1.1607 Close: 1.1619

EUR/USD Technical

S1 S2 S1 R1 R2 R3
1.1312 1.1434 1.1553 1.1637 1.1728 1.1829

EUR/USD ticked lower in the Asian session and has edged lower in European trade

  • 1.1553 is the next support level
  • 1.1637 has switched to a resistance role following losses by EUR/USD on Wednesday. It is a weak line

Further levels in both directions:

  • Below: 1.1553, 1.1434 and 1.1312
  • Above: 1.1637, 1.1728, 1829 and 1.1910
  • Current range: 1.1553 to 1.1637

Original post

EUR/USD – Euro Dips To 2-Week Low, Eurozone CPI Hits 2 Percent
 

Related Articles

InstaForex Group
Bearish Trend In GBP/USD Set To Extend By InstaForex Group - Jun 21, 2021

Retail sales in the United Kingdom dropped to 24.6% from 42.4%, missing market expectations of 29.7%. So far, the data has been influenced by the low base effect, making it...

EUR/USD – Euro Dips To 2-Week Low, Eurozone CPI Hits 2 Percent

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email