Euro dollar macroeconomic overview
On Wednesday, the US Bureau of Statistics revealed that US inflation fell in May, with the annual CPI coming in at 3.3%, down from 3.4% in April. More significantly, year-over-year Core CPI grew less than expected, reaching just 3.4% versus the 3.5% expected. On a monthly basis, the CPI remained stable while the Core CPI increased by 0.2%. These data have put pressure on the US dollar, allowing fiber to gain ground.
On Wednesday, the Bureau of Labor Statistics (BLS) revealed that U.S. inflation declined in May, with the annual CPI coming in at 3.3%, down from 3.4% in April. More significantly, annual core CPI grew less than expected, reaching just 3.4% versus the 3.5% expected. On a monthly basis, CPI remained stable while core CPI grew by 0.2%. This data has put pressure on the US dollar, allowing fiber to gain ground.
Technical Analysis and Euro Dollar Forecasts
At the time of writing, the price of fiber was at 1.0800, down 0.03% and in a waiting phase after the strong rally on Wednesday which led the exchange rate to temporarily exceed 1.0850. Traders are clearly awaiting the release of US macroeconomic data in the early afternoon before moving. From a purely technical point of view, a close above 1.0820 will suggest that the exchange rate could try to reach the annual level of 1.0862.
Conversely, a close below 1.0800 could push the bears to continue the correction phase, with the yearly level 1.0764 representing the main SHORT target.
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