EURUSD price is still hopeful for more recovery despite the market’s cautious trading currently ongoing. The United States dollar gained strength following its relief from inflation, thereby giving the pair a good hand to bounce. A glance at the US CPI (consumer price index), which moved by 7.76% in October 2022, came as a relief in response to its multi-year peak in June, which rose to about 9% in 2022 also.
EURUSD is Impacted By the Eurozone Production Report
Based on the report, the industrial production in the Eurozone contributed to 0.91% for September which in itself beat up market expectations. The figure appears to be much more reasonable, particularly in terms of the annual increase, which is approximately 4.90% higher than the previous level of 2.80%.
This, therefore, gives us hope that there is no plausible recession at hand for the euro-region economy, despite the surge in the price of energy and the increase in ECB rates. Although it has been seen that commodity prices have made a significant fall in the past few months, the euro still looks strong and is prepared for an extreme ECB rate hike.
The US government bond, on its end, shoots upward. Looking towards the Wall Street opening, the bond of 10-year Treasury makes it yield close to 4%. More chances for the currency pair to stabilize is high as this week looks quite enough for major events. This will therefore give the EURUSD room to regain and accumulate strength.
The Russia and Ukraine conflict is also seen to be emerging from a tunnel following Moscow’s retreat. As the Ukrainian president is already seeking peace, a positive outcome is possible. This could therefore result in the balance that both Ukraine and Russia have been craving.
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