EURUSD stopped growing. Overview for 18.03.2022

EURUSD is consolidating on Friday after a 5-day rising streak.

The major currency pair stopped rising late in the week. The current quote for the instrument is 1.1066.

Apart from fundamental factors, A quick rise in EURUSD was based on predictions about neutralisation of geopolitical tensions. At the same time, the “greenback” remained under pressure due to the Fed’s stance on its rates. Everyone in financial markets wanted more actions but the reality turned out to be more restrained. 

There are much more statistics now than last week. For example, the Euro Area reported on the CPI for February. The indicator showed 5.9% y/y, which is higher than expected. The Core Inflation remained at 2.7% y/y. The major contribution to the inflation rally was made by energy and food prices. 

The European Central Bank Governor Christine Lagarde said yesterday that inflation would reach stability at 2% in the midterm and the Chief ECB Economist agreed – he said he was sure that the inflation surge was temporary. 

The Industrial Production in the US added 0.5% m/m in February, the same as expected. In January, the indicator expanded by 1.4% m/m. The Capacity Utilization showed 77.6%.

The American data is looking quite positive and confirms the economic stability in the country. 

Later today, investors should pay attention to the US real estate market statistics, such as Existing Home Sales, and also the CB Leading Index.

Source: Roboforex

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