EUR/USD bounces from one-month low on dollar weakness, German GDP could be a non-event
|- EUR/USD regains some poise on broad-based US dollar losses.
- The greenback faces selling pressure despite losses in the S&P 500 futures.
- With markets focused on virus resurgence, the German GDP could be a non-event.
EUR/USD is charting a recovery as the safe-haven demand for the dollar has weakened despite continued risk aversion in stock markets.
The pair is currently trading at 1.1692, having hit a low of 1.1650 on Thursday. Markets last saw that level on Sept. 28.
The dollar is losing ground across the board. The dollar index, which tracks the greenback's value against majors, is currently trading 0.20% lower on the day at 93.77. Notably, the Chinee yuan is the biggest beneficiary of the dollar strength. The USD/CNY pair is down over 0.47% at 6.6826 at press time.
The greenback's losses look confounding, given the S&P 500 futures are signaling continued risk aversion with a 0.73% drop. The major Asian stocks are also trading in the red.
Besides, currently, there is little incentive to buy euros as the resurgence of the coronavirus is threatening to derail the Eurozone economic recovery. Further, the European Central Bank on Thursday gave a strong hint that it could boost its emergency bond-buying program in December.
As such, EUR/USD's gains seen at press time look unconvincing. The German Retail Sales data for September and the third-quarter German and Eurozone Gross Domestic Product scheduled for release Friday could turn out to be non-events. That's because these data sets are backward-looking and do not provide any information on the impact of coronavirus' recent resurgence on the German economy.
However, Eurozone's preliminary Consumer Price Index for October, due at 10:00 GMT, could move the EUR pairs. A weaker-than-expected reading would strengthen the case for additional European Central Bank (ECB) easing in December and could fuel losses in the single currency.
In the North American session, the focus would be on the US Core Personal Consumption Expenditure, the Federal Reserve's preferred inflation measure.
Technical levels
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