EURUSD and GBPUSD: The Impact of Inflation

During the Asian trading session, the euro fell again to the 0.99500 level.
The pound continues its bearish trend during the Asian trading session.
Inflation in the Eurozone reached a record level in August, Eurostat’s final data showed on Friday.

EURUSD chart analysis

During the Asian trading session, the euro fell again to the 0.99500 level, where it once again found support. Then we see another attempt to recover towards the 1.00000 level. This morning’s data on inflation in the European Union showed that inflation is not slowing down. It remained at the same level as the previous month at 9.1%, and so far, there are no indications that we will see a weakening of inflation. We need a continuation of this positive consolidation and a return above the 1.00000 level for a bullish option. If we managed to hold above, we would get additional support in the moving averages. Potential higher targets are 1.00500 and 1.01000 levels. We need a new negative consolidation and a retest of support at the 0.99500 level for a bearish option. A break of the euro below would increase the negative pressure, and the pair could go even lower. Potential targets are 0.99000 and 0.98500 levels.

GBPUSD chart analysis

The pound continues its bearish trend during the Asian trading session. The pair is now below the 1.14000 support level. This morning’s low was at the 1.13500 level. After that, the pound recovered to the 1.14000 level and is looking for new support. For a bullish option, we now need to try to hold above 1.14000 and start a further positive consolidation. Potential higher targets are 1.14500 and 1.15000 in yesterday’s support zone. For the bearish option, we need a continuation of the negative consolidation and another testing of this morning’s low at the 1.13500 level. A break of the pound below would increase bearish pressure. Potential lower targets are 1.13000 and 1.12500 levels.

Market Overview

Inflation in the Eurozone reached a record level in August, Eurostat’s final data showed on Friday. Inflation rose to 9.1% from 8.9% in July. Core inflation, which excludes energy, food, alcohol, and tobacco, rose to an estimated 4.3% in August from 4.0% in July.

The post EURUSD and GBPUSD: The Impact of Inflation appeared first on FinanceBrokerage.