{"id":3814,"date":"2017-06-30T00:00:00","date_gmt":"2017-06-30T04:00:00","guid":{"rendered":"https:\/\/currencylive.com\/100151-eur-usd-inflation-focus\/"},"modified":"2017-06-30T00:00:00","modified_gmt":"2017-06-30T04:00:00","slug":"100151-eur-usd-inflation-focus","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/100151-eur-usd-inflation-focus\/","title":{"rendered":"EUR\/USD Inflation Data in Focus"},"content":{"rendered":"<p>The euro continued its ascent against the U.S. dollar in the previous session as consumer sentiment in the eurozone hit a 10 year high. The positive data overshadowed good news for the U.S., as their own GDP was revised upward. Going into the final day of the week, the euro was trading at $1.1440 versus the dollar. This is the strongest level for the euro in its exchange rate with the dollar in over a year.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>What do these figures mean? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>\n<p> When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute. <\/p>\n<p> For example, it could be written: <em>1 EUR = 1.12829 USD<\/em> <\/p>\n<p> <em>Here, \u20ac1 is equivalent to approximately $1.13. This specifically measures the euro\u2019s worth against the dollar. If the U.S. dollar amount increases in this pairing, it\u2019s positive for the euro.<\/em> <\/p>\n<p> Or, if you were looking at it the other way around: <em>1 USD = 0.88789 EUR<\/em> <\/p>\n<p> <em>In this example, $1 is equivalent to approximately \u20ac0.89. This measures the U.S. dollar\u2019s worth versus the euro. If the euro number gets larger, it\u2019s good news for the dollar.<\/em> <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n<p>Investors will now look ahead to eurozone inflation data, as measured by the consumer price index (CPI), which is due later this morning. Bloomberg analysts are anticipating inflation to drop from 1.4% the previous month, to 1.2% annually. On a monthly basis inflation is expected to remain steady at 0.9%.<\/p>\n<p>The market is not expected to cheer this, especially given that crude oil prices continue to weaken, meaning the outlook for inflation is also likely to weaken. This is bad news for the euro because European Central Bank President Mario Draghi has said on numerous occasions that he wants to see inflation tick closer towards the 2% target set by the bank, before interest rates can be raised. A lower figure for inflation would cause interest rate expectation to drop, which tends to cause the currency to weaken.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>Why do raised interest rates boost a currency\u2019s value? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Interest rates are key to understanding exchange rate movements. Those who have large sums of money to invest want the highest return on their investments. Higher interest rate environments tend to offer higher yields. So, if the interest rate or at least the interest rate expectation of a country is relatively higher compared to another, then it attracts more foreign capital investment. Large corporations and investors need local currency to invest. More local currency used then boosts the demand of that currency, pushing the value higher. <\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n<h2><a href=\"#u-s-investors-await-consumer-price-inflation-data\" name=\"u-s-investors-await-consumer-price-inflation-data\"><\/a>U.S. investors await Consumer Price inflation data<\/h2>\n<p>Unlike most other central banks, who focus on the CPI, the US Federal Reserve prefer personal consumption figures as their most considered gauge for inflation.<\/p>\n<p>They\u2019re currently watching this data very closely to decide whether or not to increase interest rates one more time before the end of the year. With that in mind this inflation data has the potential to influence an interest rate hike, which is sitting at 54%, as well as to move the dollar.<\/p>\n<p>Bloomberg analysts are forecasting an annual drop in PCE from 1.5% to 1.4%, with monthly figures declining from 0.2% to 0.1%. Should the data come in lower than expected, investors could look to move out of the dollar. Where as a stronger than expected GDP figure in the previous session could offer some support to the buck. <\/p>\n<table class=\"table table-bordered\">\n<tbody>\n<tr>\n<td>\n<p><small><em><br \/>\nThis publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Inc., Currency Live or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. Consult our <a href=\"https:\/\/currencylive.com\/risk-warning\/\">risk warning<\/a> page for more details.<\/em><\/small><\/p>\n<p><small><em>This article was initially published on TransferWise.com from the same author. The content at Currency Live is the sole opinion of the authors and in no way reflects the views of TransferWise Inc.<\/em><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The euro continued its ascent against the U.S. dollar in the previous session as consumer sentiment in the eurozone hit a 10 year high. The positive data overshadowed good news for the U.S., as their own GDP was revised upward. Going into the final day of the week, the euro was trading at $1.1440 versus [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":3815,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1379,1381],"tags":[1395,1387,1398],"class_list":{"0":"post-3814","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eur","8":"category-gbp","9":"category-usd","10":"tag-eur","11":"tag-inflation","12":"tag-usd"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>EUR\/USD Inflation Data in Focus - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/100151-eur-usd-inflation-focus\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Fiona Cincotta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100151-eur-usd-inflation-focus\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100151-eur-usd-inflation-focus\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"EUR\\\/USD Inflation Data in Focus\",\"datePublished\":\"2017-06-30T04:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100151-eur-usd-inflation-focus\\\/\"},\"wordCount\":727,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100151-eur-usd-inflation-focus\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100151-eur-usd-inflation-focus.jpg\",\"keywords\":[\"eur\",\"Inflation\",\"usd\"],\"articleSection\":[\"EUR\",\"GBP\",\"USD\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2017\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100151-eur-usd-inflation-focus\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100151-eur-usd-inflation-focus\\\/\",\"name\":\"EUR\\\/USD Inflation Data in Focus - 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