Negative macroeconomic statistics from Germany | 31 5月 2022

31 5月 2022, EUR/USD

Negative macroeconomic statistics from Germany

EURUSD trading plan:

German inflation hit another all-time high, adding urgency to the European Central Bank’s exit from crisis-era stimulus after numbers from Spain also topped traders’ estimates. Driven by soaring energy and food costs, data released showed consumer prices in the continent’s biggest economy jumped 8.7% from a year ago in May. The report comes just 10 days before a crucial ECB meeting where officials are set to announce the conclusion of large-scale asset purchases and confirm plans to raise interest rates in July for the first time in more than a decade. Some policy makers have even floated the idea of a half-point hike, rather than the quarter-point most of them support. Money markets wagered on 113 basis points of rate increases by year-end. The inflation figures increase pressure on the government as households are further squeezed.

Investment idea: sell 1.0779 and take profit 1.0695.

David Johnson
Analyst of «FreshForex» company
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