EURUSD – Up
EURUSD trading plan:
The drop in euro zone business activity deepened last month, a survey showed, probably extinguishing any hope the currency union would avoid recession just as elevated inflation puts pressure on the European Central Bank to act. Businesses and consumers are wary of spending as the region heads into the winter months with already high energy prices likely to climb further. Prices are rising much faster across the region than the ECB would like. Alongside a decline in activity, this leaves the central bank walking a tightrope as it tries to curtail inflation while also supporting growth. Rising prices, particularly energy costs, alongside a gloomy economic outlook means consumers are keeping their hands in their pockets and cutting discretionary spending.
Investment idea: sell 0.9965 and take profit 0.9895.
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