EUR/USD Rises Amid Release of the HCPI

The euro climbed higher against the US dollar (USD) Wednesday, reaching above 1.1300, after a three-day rout.

The increase does not lessen the disparity that has prevailed over the past three days.

Furthermore, the US developments and resistance do not encourage the price to rise.

If we look at the present surge, it might be due to the harmonised consumer price index (CPI) Destatis, which posted a reading of 5.7 percent on FXStreet.com, with no change from a month ago.

The harmonised CPI is based on a quantitative method that takes into account all EU member states. The HICP is a fraction of costs used to describe and assess value stability in the eurozone in quantitative terms.

On a technical level, the EUR/USD currency pair looks to be trading in a very volatile sideways channel. The EUR/USD pair has good support around 1.1280, which may stabilise the price there and prevent additional losses.

EURUSD

Similarly, on January 19, 2022, the US Census Bureau, under the Department of Commerce, will announce the figure for Building Permits. Economists expect that it will remain at 1.701 million in December, compared to 1.712 million the month before.

The building permits section displays the number of permits issued for new building projects. It refers to the flow of business capital (US economic development). The USD is prone to considerable volatility as a result of this. Normally, the lower the quantity of licences, the more negative the USD becomes.

Conclusion

Given the several roadblocks on the EUR/USD pair’s journey, selling it at 1.3078 may be the best option.

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