MNI BRIEF: Goolsbee Sees No `Last Mile' Inflation Problem

GOOLSBEE DOESN'T SEE EVIDENCE INFLATION IS STALLING OUT AT 3%

MNI BRIEF: US CRE, Consumer Loan Delinquencies Rising -Fed

MNI BRIEF: Brazil IPCA Inflation Decelerates to 3.69% in April

MNI BRIEF: CNB Concern At Upside Risk, April Minutes Show

MNI China Daily Summary: Friday, May 10

MNI: US APR TREASURY BUDGET 209.5B

MNI: USDA: 2024/2025 CORN PRODUCTION EST 14.86B BSL

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Single Currency Under Further Pressure, EURUSD Bear Cycle Remains In Play

EUR
  • Softer European CPI prints over the past two days continue to place downward pressure on the single currency. EURUSD is plumbing fresh lows as the European session comes to an end and technical indicators continue to point to short-term downside momentum extending.
  • The 1.0713 objective has been breached, the Mar 24 low and this has paved the way for the next support level at 1.0653, a Fibonacci retracement point, to be breached. Immediate levels to watch are 1.0631 and 1.0608, the March 20 and 17 lows respectively. Below here would open the March lows at 1.0516.
  • Interestingly, EURJPY is also now testing a cluster of old lows between 148.72/85 which could prompt some further pressure on the pair which has come into focus following this week’s sharp turnaround from the 151 handle. As a reminder, yesterday’s unscheduled tri-party meeting held between the Japanese FSA, the Ministry of Finance and the Bank of Japan gave the market a reminder that Japanese officials may step in to correct unwarranted Yen weakening.
    • Overall, the EURJPY move is considered corrective for now, with the 50-day EMA, which intersects at 147.43, remaining intact and a key support.
  • Focus shifts to German retail sales on Thursday morning before the final manufacturing PMI reads for May. Attention will then be on the Eurozone Flash estimate of CPI which is expected to come in at 6.3% Y/y. This will be the final read before the June 15 ECB meeting.
EM BulletHomepageBulletMarketsEmerging Market NewsForeign Exchange Bullets
EM BulletHomepageBulletMarketsEmerging Market NewsForeign Exchange Bullets

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.