EUR/USD Price Remains Under Pressure After Lowly Inflation Data; US NFP Next Important Release

Inflation falls further in the Euro Area and that’s a problem for the ECB US Labor Report may shift EUR/USD sentiment.

AdvertisementEuro area inflation remains stubbornly low, according to the initial September data.

This persistent price weakness in the single block will continue to concern the ECB who remain willing to open the liquidity floodgates once more to get inflation back to - and above in the short-term if needed - their mandated level around 2%.

EUR/ USD continues to struggle to stay above 1.1700 and yesterday’s print and retreat from 1.1768 may likely be the high point for the pair in the short-term.

As I mentioned recently, the double print around 1.1600/1.1610 should continue to act as initial support.

Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EUR/USD-bullish contrarian trading bias.

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