EUR/USD Remains at a Two-and-a Half Year High
- The single-blocs unemployment rate falls to 9.1%
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The latest Euro-Zone inflation figures from show Eurostat annual inflation unchanged at 1.3%, in-line with market expectations, while the core reading rose to 1.3% from 1.2% in June and against expectations of 1.1%. While the rise in the core rate will provide ECB President Mario Draghi with a modicum of hope, inflation across the Euro-Zone continues to stagnate and leaves the path open for monetary policy to remain accommodative.
President Draghi will have been cheered however by the latest Euro-Zone employment data which saw the unemployment rate across the bloc fall to 9.1% from 9.3% and against expectations of 9.2%.
The single-currency barely moved on the release and remains at levels last seen in January 2015. EURUSD is currently being boosted by continued Euro-Zone growth, while the USD remains weak on political and fiscal concerns. The pair however are currently in ‘overbought’ territory, according to the latest stochastic readings, although support is provided by the bullish 20-day/100-day ema crossover.
EURUSD Price Chart: Weekly Timeframe (August 31, 2015 – July 31, 2017)
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--- Written by Nick Cawley, Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.