The EUR/USD pair has attained its highest level since August 31, 2023.
This primary currency pair stands strong, reaching ten-week highs on Wednesday, with the current EUR/USD exchange rate at 1.0880.
The market witnessed significant volatility yesterday evening, triggered by the release of US price reports.
The Consumer Price Index for October came in at zero month-on-month, contrary to the forecasted 0.1% rise and the previous increase of 0.4%. On an annual basis, the inflation rate stood at 3.2%, compared to the forecast of 3.3% and the September value of 3.7%.
While positive dynamics were anticipated in the main index, the slowdown in the growth rate in the core indicator was a welcomed surprise for the market. Core prices increased by 0.2% month-on-month (4.0% year-on-year), while the expectation was for no change from the previous value of 4.1% year-on-year.
A reduction in inflationary pressures signals positivity for the economy and capital markets. The dollar naturally declined in this context as the prospects for a new cycle of monetary policy tightening by the US Federal Reserve diminished.
Today, the market awaits US retail sales statistics and industrial production parameters for the same month.
The post EUR Surges on Optimism: Overview for November 15, 2023 appeared first at R Blog – RoboForex.