The Euro has managed to trade above the $1.1600 level against the US dollar in today’s Asian trading session but as it comes to a close the EUR/USD currency pair has fall back below this mark and now the stage is set for a big week regarding the European currency.
On Friday we saw the release of better than expected Consumer price index figures from the Eurozone which hit the market at 3.4% against analysts expectations for a figure of 3.3% and well up from last months reading of 3%.
The news was enough to give a boost to the Euro and help it to rebound off a 14 month low of $1.1562 to finish the day at $1.1592 but the higher than expected inflation figures have also raised some concerns as many attribute this to the cost of fuel.
The price of petrol in the Eurozone is at it highest in many years and the soaring price of natural gas could hinder the recovery currently underway from the coronavirus which has decimated the world economy.
With the costs are climbing ahead of the winter, many in Europe will have to cut back on spending in order to pay for energy to heat their houses and that will once again leave businesses struggling to survive as the amount of customers dwindle.
With no major economic news due for release from the Eurozone of the US today, the EUR/USD currency pair is likely to remain rangebound and find strong resistance at the $1.1600 mark but should find support at the $1.1576 level which was formed on Friday.
Tomorrow’s market services PMI figures from the Eurozone as well as ISM services figures from the US should create some movement in this currency pair but many traders will be waiting for the release of the non-farm payrolls figure at the end of the week before placing any serious positions with regards to the EUR/USD currency pair.