The Euro-Dollar pair is down over 0.5% today after several days in the red. Today's speech by EU president Lagarde mentioned how the economic recovery had come quicker than expected six months ago. This was praised by the prompt vaccine distribution so citizens could get back to work. Across the pond, the US just saw a slowing in inflation and an increase in retail sales which were expected to be negative this month. Both sides seem to be recovering well.
The USD looks like it could be the better play here because at least investors are getting hints as to approximately when the Fed will start tapering and raising rates. Lagarde said that Europe is far from recovery, but they are impressed with the pace so far. However, whatever has been said so far, it doesn't seem like investors are taking this all too well and are flocking to the USD today. The pair's general price action has also been relatively weak for the past three months.
EU fell under its 50 DMA and is on support around 1.75400s. If price breaks this level, it could be a catalyst of another significant drop. If this level of support does not break, there could be more consolidation between this support and resistance level.
10/26/2021 A string of articles have come out recently that will make you consider crypto and the potential around the emerging industry. Here are a few article headlines that I will summarize and explain why this is really important to the market as a whole. Tesla May Restart Crypto Transactions Again Several months ago, Tesla […]
Today I'll share some economic analysis on the CPI report and what to look for in order to tell if inflation will get worse. Lastly, I'll cover some ways that you can make an investment play on inflation. September CPI Report The Consumer Price Index report for September 2021 was published on October 12, 2021. […]
10/25/2021 Gold and crypto pairs have been on a tear recently due to several factors and one of them being inflation. Some analysts are calling for a prolonged run in demand for the precious metal and a $3000 per oz price in under a year. Our outlook I think that gold has been due for […]