This morning, the euro experienced some losses as the 10-year Treasury yields fell to 2.5%, which is close to its lowest level since August 9th of this year. The decline is due to the release of data this morning that indicates basic consumer inflation is stable at around 5.3%. Additionally, unemployment rates are stable at around 6.4%, which could complicate the situation for Monetary policymakers at the European Central Bank.
Looking ahead to European indices, European stock markets maintained their early gains in August’s final session, with the German DAX up 0.59% and the pan-European STOXX 600 up around 0.2%, as investors digested unchanged inflation data.
The euro has remained steady in early Asian trading, holding at its highest level against the Japanese yen in 15 years. This marks the fifth consecutive day of gains, and the euro has also strengthened against the dollar for three consecutive days, though it did experience a slight dip below the 1.9370 level.
By looking at the charts on the euro against the US dollar, we find that the pair retreated to touch the moving averages for the period of 20 and 50 days, coinciding with some weakness in the purchasing power on the momentum indicators for the medium-term intervals, in an attempt to re-test the levels of breaching the downside trend that prevailed on the pair For more than a month and a half, so the pair is likely to receive more purchasing power around the 20- and 50-day moving averages, to rise to the top, targeting the resistance levels around 1.0938, then in the event of a breach, we will target 1.1017.
