Fiber investors will now review the second-round runoff, scheduled for July 7.
Euro Dollar Fundamental Overview
On the monetary policy front, investors are looking for signs that the European Central Bank will implement further rate cuts. The ECB began cutting interest rates in early June after two years of tightening rates to tame price pressures from pandemic-induced stimulus.
In today’s session, the key driver for fiber is the preliminary German Harmonized Index of Consumer Prices (HICP) for June, which will be released shortly before lunch. Economists expect the annual HICP of the eurozone’s largest economy to rise at a slower pace of 2.6% from the previous release of 2.8%. In addition, the monthly Consumer Price Index (CPI) is forecast to rise at a stronger pace of 0.2% from 0.1% in May.
Technical Analysis and Euro Dollar Forecasts
At the time of writing, the price of fiber is quoted at 1.0764, up 0.48% and in full bullish movement influenced by the first round of the French presidential elections and the rebound from the usual support of 1.0680, which led the exchange rate to immediately reach the annual level of 1.0764. A renewal of the bullish sentiment will be confirmed by a daily close above 1.0764, which will allow the euro dollar to reach the key level of 1.0800, the last obstacle before reaching the annual level of 1.0862.
On the downside, only a close below 1.0680 will allow the euro-dollar bears to reach the annual level of 1.0643.
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