EUR/USD Current price: 1.1910
- EU inflation, German retail sales disappointed, but the EUR is up anyway.
- US data marginally positive, but inflation still sluggish.
The EUR/USD pair regained the 1.1900 level after the US opening and advanced up to 1.1931, as dollar buyers gave up. The greenback started the day with a positive footing, steady through the Asian session and up in the European one, helped by softer-than-expected EU inflation data. According to the official release, Euro area annual inflation is expected to be 1.5% in November 2017, up from 1.4% in October, but below the expected 1.6%. The core reading is expected to remain unchanged at 0.9% against expectations of 1.1%. Also, German retail sales unexpectedly fell in October, down 1.2% in the month and by 1.4% when compared to a year earlier, well below the expected 2.8% advance. The headlines pushed the pair to a daily low of 1.1808, from where it later recover with no defined catalyst behind it. US data was generally encouraging and in-line with market's expectations but failed to give the greenback a so needed boost. Unemployment claims fell to 238K for the week ended November 24th, better than the 240K expected. Personal spending in October matched market's expectations with a 0.3% gain, while Personal income rose by 0.4%, slightly above the 0.3% forecasted. The PCE price index was up by 1.6% in October, although the core figure disappointed, steady at 0.2%, indicating that inflation remains sluggish, therefore putting on doubt 2018 rate hikes.
The pair holds on to gains ahead of the Asian opening and Friday's data, when Markit will release the final versions of European and US manufacturing PMIs. In the meantime, the pair turned back neutral short-term, given that in the 4s hour chart, the price is holding just a handful of pips above a bearish 20 SMA, while technical indicators turned south within positive territory, now nearing their mid-lines. The pair is midway of its weekly range, clearly showing the absence of a defined trend. Whereas above 1.1960 or below 1.1790 the outlook will be more defined, seems the market will wait for December Fed and ECB's monetary policy announcements before choosing a side.
Support levels: 1.1860 1.1820 1.1785
Resistance levels: 1.1930 1.1960 1.2000
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
USD/JPY drops toward 142.00 ahead of BoJ policy decision
USD/JPY has turned south, approaching 142.00 in the Asian session on Friday. Markets turn risk-averse and flock to the safety in the Japanese Yen while the Fed-BoJ policy divergence and hot Japan's CPI data also support the Yen ahead of the BoJ policy verdict.
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood
AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed.
Gold price treads water below record peak, awaits Fedspeak
Gold price hovers below the all-time peak touched earlier this week amid a bearish US Dollar and rising bets for more upcoming rate cuts by the Fed. Concerns over an economic downturn in China keep the safe-haven Gold price afloat. Fedspeak remains on tap.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV
Ripple (XRP) gained 2.3% since the start of the week. The altcoin’s gains are likely powered by key market movers that include Ripple USD (RUSD) stablecoin, Grayscale XRP Trust performance and the demand for the altcoin among institutional investors.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.