The economic situation in the Eurozone remains challenging.

The Euro currency has remained stable, despite the United States increasing interest rates. The economic indicators for the Eurozone have shown slight improvements, and it is expected that interest rates will be increased further to control inflation and meet the target of 2%.

The forecasted Consumer Price Index (CPI) indicates a decrease to 5.6% in June from 6.1% in May. However, the actual CPI figure came in at 5.5%, which is lower than expected. This reduction in CPI has been attributed to lower fuel costs and a slowdown in the increase of food prices. However, Germany is the only country reporting an increase in inflation.

As for the Core CPI, which excludes energy and food, it decreased to 6.8% in June from 6.9% in May. However, within the services sector, prices increased by 5.4% from 5.0%, indicating a rapid recovery of consumer spending and adaptation to higher borrowing costs due to increased interest rates.

The announced data will not change the stance of the European Central Bank (ECB). The ECB has already confirmed that interest rates will be increased for the ninth time in July and is considering another increase in September. Christine Lagarde, President of the European Central Bank, has reiterated that interest rates will definitely be increased for the ninth time in July.

From Roman's perspective, it is quite clear that the Federal Reserve is trending towards increasing interest rates again after temporarily halting rate hikes in June. The data released on Thursday showed that the US economy has grown more than initially projected in the first quarter, and the number of people filing for initial jobless benefits has decreased, indicating a resilient labor market.

With the consecutive rate hikes in recent times, REITs (Real Estate Investment Trusts) in the housing sector are not performing particularly well. This is due to the higher interest rates and a downward trend in office space leasing, along with an increase in remote work.

Apart from concerns about inflation, it is necessary to closely monitor the Purchasing Managers' Index (PMI) figures. The PMI for the Eurozone, announced recently, has shown continuous downward adjustments. The manufacturing PMI has decreased for 11 consecutive months, indicating slower employment growth, which hampers improvements in the manufacturing sector. Additionally, this has also impacted business confidence figures in the Eurozone, with confidence dropping to 0.06 in June from 0.19 in May.

Technical analysis data (5H)

Resistance: 0.9174, 0.9186, 0.9192

Support: 0.9156, 0.9150, 0.9138

Source: Investing.com