This morning we find important business confidence and consumer sentiment, inflation and CPI data from several euro zone countries, in particular the German consumer price release and the ECB's DeGuindos statement are considered relevant. Currently inflation data marked by the ECB this year has been marking a decline from 2.8% in January to 2.4% in March, so if the economy keeps up its pace, rates are likely to be maintained at least until June.
The correction in the monetary masses indicated by the ECB may signal a slight strengthening of the Euro market in the face of rampant inflation caused by elevated debt issuance since 2019 which the ECB is trying to correct despite continuing to issue additional debt in line with the US Fed, although it does present a future where perhaps the two currencies may differ in economic policies in the coming year. ECB link (04/26/24): www.ecb.europa.eu/pr...3~c0fcd1118b.en.html
As can be seen, banks are opting for the Euro as an exchange currency and this is being reflected in the EURUSD cross.
So much so that it is possible to be represented in the market with long-term adjustments that try to touch the minimum of 1.06 dollars per euro, since the European monetary policy seems to mark that direction.Although the ideal for Europeans in a context of a strong economy, which is not the current case, is that the euro recovers its tone trying to overcome 1.09 dollars per euro, since it is important for the euro zone to be able to trade with a strong currency to have a solid import market on which a large number of European countries are based.
Ion Jauregui - AT Analyst
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
The correction in the monetary masses indicated by the ECB may signal a slight strengthening of the Euro market in the face of rampant inflation caused by elevated debt issuance since 2019 which the ECB is trying to correct despite continuing to issue additional debt in line with the US Fed, although it does present a future where perhaps the two currencies may differ in economic policies in the coming year. ECB link (04/26/24): www.ecb.europa.eu/pr...3~c0fcd1118b.en.html
As can be seen, banks are opting for the Euro as an exchange currency and this is being reflected in the EURUSD cross.
So much so that it is possible to be represented in the market with long-term adjustments that try to touch the minimum of 1.06 dollars per euro, since the European monetary policy seems to mark that direction.Although the ideal for Europeans in a context of a strong economy, which is not the current case, is that the euro recovers its tone trying to overcome 1.09 dollars per euro, since it is important for the euro zone to be able to trade with a strong currency to have a solid import market on which a large number of European countries are based.
Ion Jauregui - AT Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.