S1 |
S2 |
S1 |
R1 |
R2 |
R3 |
1.1046 |
1.1120 |
1.1212 |
1.1300 |
1.1434 |
1.1553 |
EUR/USD is flat in the Thursday session. Currently, the pair is trading at 1.1286, down 0.01% on the day. On the release front, German Final CPI came in at 0.2%, matching the forecast. Eurozone industrial production declined 0.5%, weaker than the estimate of -0.4%. In the U.S., unemployment claims is expected to dip to 215 thousand. On Friday, the U.S. releases retail sales reports and UoM consumer sentiment.
German and eurozone numbers disappointed on Thursday, but the euro shrugged off the weak numbers. German Final CPI came in at 0.2%, unrevised from the initial reading. Still, this gain was much smaller than the April gain of 1.0%. Eurozone industrial production continues to struggle, posting a third consecutive decline. The ongoing contraction reflects significant weakness in the manufacturing sector, which has been hit hard by global trade tensions, which have lessened demand for German and eurozone exports.
In the U.S., the focus was on consumer inflation indicators for May. CPI slowed to 0.1%, down from 0.3% in the previous release. This matched the estimate. The core reading posted a gain of 0.1% for a fourth straight month, shy of the forecast of 0.2%. With the May inflation numbers remaining low, there could be more pressure on the Fed to lower interest rates in order to boost economic activity and inflation. The likelihood of further rates this year is increasing – the CME Group has set the odds of a July cut at 66% and another cut in September at 50%. Lower interest rates makes the U.S. dollar less attractive to investors, so investors will be keeping an eye at alternative assets.
Aussie drops on stubborn unemployment
EUR/USD Fundamentals
Thursday (June 13)
-
2:00 German Final CPI. Estimate 0.2%. Actual 0.2%
-
4:00 Italian Quarterly Unemployment Rate. Estimate 10.4%. Actual 10.4%
-
5:00 Eurozone Industrial Production. Estimate -0.4%. Actual -0.5%
-
All Day – Eurogroup Meetings
-
8:30 US Import Prices. Estimate -0.3%
-
8:30 US Unemployment Claims. Estimate 215K
-
10:30 US Natural Gas Storage
-
13:01 US 30-year Bond Auction
Friday (June 14)
-
8:30 US Core Retail Sales. Estimate 0.5%
-
8:30 US Retail Sales. Estimate 0.7%
-
10:00 US Preliminary UoM Consumer Sentiment. Estimate 98.1
Open: 1.1288 High: 1.1304 Low: 1.1286 Close: 1.1286
EUR/USD Technical
EUR/USD was flat for most of the Asian session and has edged lower in European trade
-
1.1212 is providing support
-
1.1300 was tested in resistance earlier on Thursday. It is a weak line
-
Current range: 1.1212 to 1.1300
Further levels in both directions:
-
Below: 1.1212, 1.1120 and 1.1046
-
Above: 1.1300, 1.1434, 1.1553 and 1.1621
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.
Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Recommended Content
Editors’ Picks
EUR/USD consolidates weekly gains above 1.1150
EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains
GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains.
Gold extends rally to new record-high above $2,610
Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap
SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.
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.
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.