Currency of the Week: EUR/USD

With inflation and manufacturing data releasing from both US and EU this week, there can be much in store for USD and EUR. Following the 75 rate hike in June, the US Federal Reserve suggested that there will be a rate hike for 50 to 75 bps at the July Meeting. FED Chairman Jerome Powell mentioned there may also be possible that more rate hikes may cause a recession.

On the other hand, PCE Price Index to be expected to be at 6.7% YoY compared to the 6.3% YoY in April. Whereas, Core PCE is expected to drop at 4.8% YoY from 4.9% YoY. Watching inflation rates for the next few days might heed a strong warning on how purchasing power will be affected for the next few months. Please keep in mind that increased leverage increases risk.

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