EURUSD has important economic data ahead on Wednesday with German employment, inflation, and US ISM manufacturing figures.
EURUSD – Daily Chart
EURUSD has continued to suffer due to stubborn inflation in the US, with traders expecting the Federal Reserve to continue hiking interest rates. The EURUSD has support at the 1.0480 level and may head there tomorrow if the data leans toward dollar strength.
Germany’s unemployment levels will be the first data point released, with traders looking for another drop in unemployment after the -15k last month. Unemployment is still stubbornly holding near the 5.5% level in Europe’s largest economy, with six straight readings at that number.
Inflation numbers will be released for the German economy, and a drop from 8.7% to 8.5% is expected. However, that is still high, and French inflation started the week on a similar note. The French government is working with food producers and energy retailers to try and ease the burden on consumers.
US data will conclude the day with ISM manufacturing data released on Wednesday, where traders are looking for an increase from 47.4 to 48 for February. The dollar has been hurt by some slowing economic activity. A higher number would add to the recent strength in the greenback. US benchmark 10-year treasury yields have continued to rise, adding pressure to the EURUSD in recent weeks.
EURUSD Forecast
This week also sees the beginning of $39 billion of manufacturing incentives released by the White House to bring semiconductor manufacturing back to the US. The President’s CHIPS act will provide funding for the construction or modernization of manufacturing facilities.
