Forex. Euro/Dollar (EUR/USD) forecast for today
Throughout the day, there was a versatile trading dynamics - there was an attempt to test the support of 1.1529. The news background contributed to the growth of trading activity. Overall inflation in the US rose by 0.4% on a monthly basis, which is slightly higher than the forecast of 0.3%. Core inflation increased by 0.2%, thus coinciding with the forecast. At the same time, financial markets estimated the probability of an increase in the Fed's interest rate at about 50 x 50. Three members of the Fed's leadership said that the US economy has recovered sufficiently, there are grounds to reduce the asset purchase program.
Some members of the Fed's Open Market Committee continue to argue that inflationary pressures will be temporary. The head of the Atlanta Fed, Rafael Bostic, made it clear on Tuesday that faith in the temporary nature of inflationary pressure may weaken. The official said there are increasing signs of supply chain disruptions that are responsible for most of this year's inflation.
Today, the focus will be on the producer price index and the number of initial applications for US unemployment benefits. Traditionally, the US currency will show an increase in trading activity relative to other world currencies.