Forex Fundamental Analysis – The European Commission cut its forecasts


EURUSD trading plan:

The European Commission cut its forecasts for economic growth in the eurozone for this year and next and revised up its estimates for inflation. The EU executive now predicts growth of 2.6% this year for the 19-country currency bloc, slightly less than the 2.7% it had forecast in May. For the wider 27-country European Union, the growth forecast was unchanged at 2.7% this year, but revised down to 1.5% in 2023 from 2.3%. In a major change, the Commission also raised its estimates for euro zone inflation, which this year is now expected to peak at 7.6% before falling to 4.0% in 2023. In May, the Commission had forecast prices in the euro zone would rise 6.1% this year and 2.7% in 2023.

Investment idea: sell 1.0135 and take profit 1.0050.

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