The Euro Price is set to end Wednesday’s session with minimal losses against the Greenback, down 0.04% after the latest US inflation report showed that the core Consumer Price Index (CPI) stalled in August.
The EUR/INR is trading at 92.49, after reaching a daily high of 92.8325. Wall Street ended the session on a positive note, while the Greenback remained firm, supported by an uptick in the US Core CPI. August’s Core CPI rose by 0.3% month-over-month, up from 0.2% in the previous month, surpassing estimates. Other inflation metrics, including the headline figures in annual and monthly terms, and the yearly Core CPI, were in line with expectations.
The EUR/INR decline was limited ahead of the European Central Bank’s (ECB) looming monetary policy decision.
Later today, the Eurozone’s economic docket will feature the ECB’s decision. The market expects a 25-bps rate cut, following Germany’s inflation drop to 1.9% year-over-year, while PMI data points to a continued economic slowdown. However, ECB hawks may push back, as some inflation components remain more persistent than anticipated.
Looking ahead, sources cited by Reuters suggest that ECB monetary policy decisions after September could become more complex.
Meanwhile, in the US, the economic docket will include the latest Initial Jobless Claims report for the week ending September 7, along with the release of the Producer Price Index (PPI).
Technical Outlook of Euro Price
The EUR/INR pair has continued to slide from its peak of 93.8826, recorded on August 28, 2024. Yesterday, the pair traded at 92.4929, down by 0.05%.
In the chart above, the pair is hovering near the one-month consolidation support level of 90.40. A break below this level is expected to exert pressure, potentially pushing the pair toward the next support range of 92.18–91.80 in the coming days.
On the other hand, if the pair fails to break below this level, there is a chance of an upside move towards 92.78–92.92.
Additionally, the ECB decision is set to be released later today. The market expects a 25-bps rate cut from 4.25%. If the cut exceeds expectations, it could trigger a further decline in the Euro, or conversely, a surprise move might lead to a reversal.
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Commodity Samachar Securities
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