U.S. inflation is gradually slowing | 13 December 2022

13 December 2022, EUR/USD

U.S. inflation is gradually slowing

EURUSD trading plan:

The U.S. central bank is expected to start dialing back the size of its interest rate increases. Easing producer prices foreshadow an improving inflation environment. The Fed will likely downshift the pace of rate hikes next week and should continue to downshift in 2023. However, the monthly increase in producer prices illustrates the need for continued tightening. The Fed tracks the so-called core PCE price index for its 2% inflation target. This solid increase in core goods prices poses an upside risk to the core goods disinflationary trend that was evident in recent consumer price index data.

Investment idea: buy 1.0515 and take profit 1.0600.

David Johnson
Analyst of «FreshForex» company
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