Fundamental Analysis: July 13, 2016
The EUR/USD pair experienced a small upsurge after a possible stability of UK politics, lifting pressure from traders. The USD traded at 96.38 or 20 points lower, giving up some of its “safe haven” profit. On the other hand, the EUR traded today at 1.1088.
Consumer prices in Germany rose by 0.1%, while the yearly inflation rate for the past three months has increased from April’s -0.1%. Concerns within the Bundesbank may soon arise if the inflation rate continues its increase.
Fuel prices also went up as oil prices increased, causing transport costs to go up by 0.8%. On the other hand, food prices for this month went down at 0.4% while recreation prices increased after an upsurge in package holiday prices. On Monday afternoon, the EUR single currency experienced a marginal elevation against the USD after slightly up and down swings in a data-light session.
In general, the EUR was able to limit its incurred losses, thanks to the psychological barrier at the level of $1.10 for two consecutive sessions in spite of the turmoil caused by nonfarm payrolls.
Andrea ForexMart, Official Representative