EURUSD Signal: Bank Sentiment Divergence Between the Feds & ECB
Fundamentals
EUR(Bearish)
ECB unlikely to raise interest rate in 2022 despite high inflation of 3.4%
says medium term is still subdued, unlikely to meet conditions for rate hike.
Discouraging European Data German Sales down, Industrial Production down,
but PPI jumped to 16.0% (hinting inflationary pressure)
USD (Bullish)
Feds announced $15 billion per month reduction of asset purchases beginning November
Powell believes high inflation to be transitory, noting that inflation will remain high
Generally, conservative stance by powell but dollar still bullish, blames supply bottleneck
Technicals
Prices retraces bank into supply zone near the 61.8 fib level
EUR(Bearish)
ECB unlikely to raise interest rate in 2022 despite high inflation of 3.4%
says medium term is still subdued, unlikely to meet conditions for rate hike.
Discouraging European Data German Sales down, Industrial Production down,
but PPI jumped to 16.0% (hinting inflationary pressure)
USD (Bullish)
Feds announced $15 billion per month reduction of asset purchases beginning November
Powell believes high inflation to be transitory, noting that inflation will remain high
Generally, conservative stance by powell but dollar still bullish, blames supply bottleneck
Technicals
Prices retraces bank into supply zone near the 61.8 fib level
