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01.12.202209:39 Forex Analysis & Reviews: Trading plan for EUR/USD and GBP/USD on December 1

Inflation in Europe hit 10.0% in November, slowing for the first time since June last year. Of course, it is difficult to draw any conclusions from this, but the fact that it fell means that the European Central Bank may consider easing the pace of interest rate hikes next year. This should have prompted euro to weaken in price; however, the recent statement of Fed Chairman Jerome Powell hinted that the Fed may its interest rate by only 50 basis points in December, so dollar demand dipped, resulting in a rise in EUR/USD.

Inflation (Europe):

Exchange Rates 01.12.2022 analysis

Most likely, dollar will remain under pressure because the upcoming US labor market data are presumed to be negative. In particular, the number of initial jobless claims is expected to rise by 18,000, while repeated claims should increase by 9,000.

Number of jobless claims (United States)

Exchange Rates 01.12.2022 analysis

EUR/USD bounced back from the support level of 1.0300 because of the sudden increase in the volume of long positions. But even if the price surged, the pair is still within the range of 1.0300-1.0500, so no drastic changes have been observed so far.

Exchange Rates 01.12.2022 analysis

GBP/USD remains the same. 1.1950/1.2000 is still a key support level, while 1.2150, where the pair rebounded last week, is still a strong resistance for speculators.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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