(AI Video Transcript)
EUR/USD
Today, we will keep a close eye on the EUR and the USD. The euro has been doing well against the dollar recently and it’s expected to stay strong. Germany will release its consumer price inflation data, which is expected to show a slight decrease. This could have a big impact on the euro’s performance. Inflation is important because it measures the rising prices of goods and services. If the inflation rate is lower than expected, it could mean that the European Central Bank’s efforts to control inflation are working better than anticipated. This could provide support for the euro, which means it could continue to do well against other currencies.
GBP/USD
For traders, this is an interesting time to be in the market. You might want to consider setting your stop-loss at around 109 level and aim for a price target of 110.65 or even higher at 112.70. Setting a stop-loss is important because it helps limit your losses if the market goes against you. On the other side of things, lower inflation is not necessarily a bad thing for the euro. In fact, the euro has been gaining value against GBP/USD for the past two months. It’s currently trading at 86.49 against the pound. So, lower inflation could actually be a positive sign for the euro.
US GDP
Over in the US, economists are predicting a 5% increase in the gross domestic product (GDP) for the third quarter. This is higher than the initial reading of 4.9%. This is a good sign for the US economy and could potentially impact the US dollar’s performance. There’s some other important data to keep an eye out for as well, like the release of the Fed beige book. This will give us more insight into the overall economic conditions in the US. So, it’s clear that both sides of the Atlantic will be closely watching the euro-dollar trade as these economic indicators and inflation figures are released.
