MARKET VISION: EURO

EURO

The euro held steady above $1.09, remaining near its highest levels since August 10, as investors digested a series of statements from ECB officials while anticipating upcoming inflation data. ECB policymaker Nagel warned on Tuesday that if the inflation outlook worsens, the central bank may need to consider raising interest rates again, advising against a hasty easing of policy. At the same time, President Lagarde acknowledged that inflationary pressures within the eurozone are easing, but strong wage growth complicates authorities' attempts to curb price increases. Lagarde also forecast a continued softening of inflationary pressures, but highlighted the possibility of a temporary spike in headline inflation in the coming months. The next CPI report is expected to reveal a drop in the euro area's annual inflation rate to 2.7%, the lowest since July 2021, and the underlying indicator will fall to 3.9%, its lowest point. low since June 2022.

VISION OF THE ANALYSTS

Based on recent observations, it has been identified that the instrument encountered resistance at approximately $1,096 USD yesterday. If this resistance level is surmounted, there is potential for further extension and exploration of new resistance levels at around $1,106 and ultimately reaching $1,115. Otherwise, and if the instrument retraced, we could see supports in the $1,083 area and in the $1,068 area as a second support level. It is imperative to keep a close watch on the inflation data emanating from Europe and the United States, along with the forthcoming non-agricultural report next week. Additionally, a keen eye should be maintained on the dollar index in case there are any alterations to its current downward trajectory.

Technical note: Stochastic is in the overbought zone