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EUR/USD lost its footing and has fallen under the 1.000 price level during the early hours of today (Thursday). The short-term outlook reveals that this price decline is due to a lack of buyers. Nevertheless, the United States October CPI data will soon give a new direction to the pair.
The risk avoidance situation helped the USD to gain some strength yesterday, which caused the pair to break its three days in a row profiting. As investors are being careful during the opening hours of today, the pair found it difficult to recover from downward pressure. Also, the United States Dollar index recorded a 0.75% gain yesterday (Wednesday), however, it was recently noticed gathering little gains at 110.55.
More Events That May Influence EUR/USD Price Dynamics
The yearly CPI in the United States is foreseen to fall to 8% two months ago (September). While the main CPI which doesn’t consist of volatile food and energy is anticipated to slide lower to 6.5% from 6.6% on an annual basis.
Nevertheless, a hot inflation report with the main CPI arriving higher than September’s 6.6%, may cause investors to rethink the chances of another 75 basis points interest rate increase from the Federal Reserve by next month (December). Consequently, this will supply some strength to the USD, but EUR/USD will fall lower.
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