EUR/USD has breached the short-term corrective uptrend channel to the downside, and the broad downtrend is now to resume. The levels in the $1.2500 area have once again come in focus. Resistance is at $1.2740 and $1.2850.
The euro area released some better-than-expected data during the past week. German PMIs improved, so September decline may be explained by the spike in geopolitical risks. In addition, German 10-year yields are slightly above the US ones, and this is providing some support to EUR/USD.
However, the general sentiment about the euro area seems quite negative. The European Central Bank has started buying covered bonds, but right now no one thinks that this can really help to boost inflation. Moreover, the ECB will release the results of the banks’ stress tests on Sunday, and the possibility that the euro zone’s banking sector isn’t very healthy is rather high.
The new week is going to be volatile. Watch the releases of German Ifo business climate and the euro area’s flash October inflation data on Friday. In addition, the news from the US will likely shake the market. It now depends on this news: we’ll either see a bit more of consolidation or the return to October lows.
The euro area released some better-than-expected data during the past week. German PMIs improved, so September decline may be explained by the spike in geopolitical risks. In addition, German 10-year yields are slightly above the US ones, and this is providing some support to EUR/USD.
However, the general sentiment about the euro area seems quite negative. The European Central Bank has started buying covered bonds, but right now no one thinks that this can really help to boost inflation. Moreover, the ECB will release the results of the banks’ stress tests on Sunday, and the possibility that the euro zone’s banking sector isn’t very healthy is rather high.
The new week is going to be volatile. Watch the releases of German Ifo business climate and the euro area’s flash October inflation data on Friday. In addition, the news from the US will likely shake the market. It now depends on this news: we’ll either see a bit more of consolidation or the return to October lows.
Recommended Content
Editors’ Picks
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.