EURUSD is a currency pair that remains on watch. While the pair dropped below its parity levels, it failed to distance significantly from this mark and, in fact, has been hovering near it recently. Economic calendar for today shows a potential for elevated volatility on the pair in the early afternoon today as a flash CPI report from Germany will be released (1:00 pm BST) as well as the Conference Board consumer confidence index (3:00 pm BST).
Focus will be more on German inflation data than US survey data. Flash CPI report from Spain for August, released this morning, showed an unexpected drop from 10.8% to 10.4% YoY (exp. 10.7% YoY). However, this drop was driven by fuel prices as core gauge jumped from 6.1% to 6.4% YoY. When it comes to Germany, expectations are for an acceleration from 7.5 to 7.8% YoY and, so far, state-level data confirms it with North Rhine Westphalia CPI accelerating from 7.8 to 8.1% YoY.
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Create account Try a demo Download mobile app Download mobile appTaking a look at EURUSD chart at H1 interval, we can see that the pair has been hovering around 1.00 mark recently. A strong upward move that occurred at the start of today's European stock market session pushed the pair above parity level and EURUSD attempted to break above a recent short-term trading range (0.9980-1.0028). However, a point to note is that the pair is making a break above the 200-hour moving average (purple line), which has limited upward moves this week. A meaningful break above could hint at the possibility of a bigger upward move.
Source: xStation5
