Euro is set to a minor advance

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The euro recorded around 1,1750 on Thursday in anticipation of American producer prices and weekly aid applications in a still thin market, which could result in a slightly larger result than outside the holiday periods.

We think that the euro is still more likely to be below $ 1.17 than to pass the $ 1.18. On Wednesday in July, American consumer prices did not surprise anyone, but did not surprise them with a lower than expected rate of increase. We expect the inflation dynamics in the United States to provide sufficient reason for the time being to maintain the expectation that the Federal Reserve will increase interest rate earlier than in 2024.

Next to the strong dollar, the fall in the price of gold on Thursday is a clear signal that the market is less constrained by risks.

The United Kingdom’s industrial production fell in June by 0.7 percent more than expected 0.1 percent. For the second quarter, the British then announced the preliminary growth for the second quarter, which came to 4.8 percent.

Industrial production in the euro zone unexpectedly fell in June and fell by 0.3 percent, with a 0.2 percent increase planned.

In the United States, producer prices for July and weekly aid applications are on the agenda this afternoon. Prices are expected to rise by 0.6% on a monthly basis, compared with a plus of 1.0% in June, while aid applications are expected to reach 375,000 as against 385,000 a week earlier.

After Thursday things can remain quiet in the currency field for a while, after which the attention can be drawn by American retail sales next Tuesday.

On Thursday, the euro stood at 1,1744 dollars. The European currency recorded 0.1% higher at £ 0.8472. The British pound fell 0.1 percent on Thursday and stood at 1.3861 dollars.

About the author

Nicholas de Kramer

Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at [email protected]

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