The EURINR Pair found support after data showed the annual inflation rate in Germany. This was reaffirmed in May 2023 at a 14-month low of 6.1%, down from 7.2% the month before but still much above the European Central Bank’s aim of roughly 2%. which increased anticipation that the ECB will carry out a further rate hike of 25 basis points during its meeting on Thursday.
Further, Eurozone Industrial Production rebounded in April. The official data showed. which is suggesting that the manufacturing sector recovery is attempting a comeback.
Eurozone’s Industrial Output jumped 1.0% MoM, the Eurostats said in its latest publication, vs. 0.8% expected and -3.8% previous reading.
On an annual basis, the bloc’s Industrial Production increased by 0.2% in April versus a -1.4% figure recorded in March and against the expected growth of 0.8%.
Furthermore, the European Central Bank (ECB) delivers its decision on rates on Thursday. A quarter-point increase to 3.50% is generally anticipated. Its policymakers have been adamant that the eurozone’s inflation rate is too high and that the central bank needs to do more.
Technical Outlook:
On the above chart, the EURINR pair is consolidating in between the range of 88.60-88.95 levels.
However, the pair is yet to trade above its previous swing high. which is indicating a bullish momentum in the near term.
The momentum indicator RSI is also supporting buy on every deep in days to come.
Hence, any dip towards 88.65-88.50 is expected to attract buying activities in the EURINR pair. The target would be 89.00-89.35. Traders can buy with a stop loss below 88.45 on a closing basis.