Published on 13.07.2022 13:20

The Euro is in a tight trading range as we enter today’s trading session as the market awaits a big day for news on the economic calendar and the release of consumer price index figures from the US are expected to dominate the trading day.

US consumer inflation figures for June, scheduled later during the early North American are going to have traders of the Euro on edge and a strong reading will surely send the European currency below the US dollar for the first time in 20 years.

The headline CPI is anticipated to rise by 1.1percent for the month of June, up from the 1.0% in May. The yearly rate is also expected to rise to 8.8 percent in June, up from the 8.6 in the previous month. Meanwhile, core inflation, which excludes food and energy prices, is projected to hold steady at 0.6 percent in June and drop down to 5.8 percent on yearly basis from 6 percent in May.

If the figures come in as analysts predict, the Euro is likely to stay above parity against the greenback as this news is already priced into the market. A disappointing reading may see some type of relief rally for the Euro as expectations will be pared backed on the amount of rate hikes the US Federal reserve will deliver as it may be an indication, they are finally bringing inflation under control.

Any rally in the Euro however is expected to be short lived as the Euroblock is all but certain headed for a recession over the cost of the war between Ukraine and Russia as well as surging energy prices which is beginning to strangle the local economy.

Some other news to watch out for today is the release of CPI figures from Germany as well as industrial production figures from the Eurozone and although the news is important, it is unlikely to cause much volatility in the EUR/USD currency pair as investors wait for the more important Inflation figures from the US.


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