EUR/USD is showing limited movement on Friday. In the European session, EUR/USD is trading at 1.1722, up 0.13% on the day. The euro has had a rough week, as EUR/USD is down 0.90%, erasing last week’s gains.

Inflation falls in the eurozone

Inflation levels remain weak in the eurozone, with September showing an annual inflation rate of -0.3%, lower than the -0.2% read in August. Core CPI slowed to a rate of 0.2% year-on-year in September, down from 0.4% in August. The combination of the severe economic downturn due to Covid-19 and the high value of the euro is weighing heavily on inflation levels. The continuing spectre of deflation remains a serious headache for policymakers, but the negative trend could continue for some time. In September, ECB President Christine Lagarde acknowledged that inflation “is expected to remain negative over the coming months”.

Brexit tensions worsen as EU leaders blame UK

European leaders met in Brussels on Thursday, and presented a united front against the UK, as the Brexit negotiations have faltered badly. French President Macron said that a “deal will not be made at any price” and warned that France was ready for a no-deal scenario. His sentiments were echoed by German President Merkel. The Europeans are insisting that the UK be more flexible, but the British government isn’t having any of it. The UK chief negotiator, David Frost, said he was “disappointed” with the summit and the lack of flexibility by the EU in the Brexit talks. Although the negotiations will continue next week, there is a pessimistic air around the talks, as both sides continue to blame the other for holding up an agreement.

EUR/USD Technical

EURUSD

  • There is weak resistance at 1.1748. The next resistance line is at 1.1787.

  • We find support at 1.1679, followed by a support line at 1.1649.

  • The 50-day MA is slightly above the pair.

Foreign exchange (forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher.
investment objectives, risk appetite and the trader’ level of experience should be carefully weighed before entering the forex market. There is always a possibility of losing some or all of your initial investment / deposit, so you should not invest money which is which it can’t afford to lose. The high risk that is involved with currency trading must be known to you. Please ask for advice from an independent financial advisor before entering this market.

Any comments made on Forex Crunch or on other sites that have received permission to republish the content originating on Forex Crunch reflect the opinions of the individual authors and do not necessarily represent the opinions of any of Forex Crunch’s authorized authors. Forex Crunch has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: Omissions and errors may occur.
Any news, analysis, opinion, price quote or any other information contained on Forex Crunch and permitted re-published content should be taken as general market commentary. This is by no means investment advice. Forex Crunch will not accept liability for any damage, loss, including without limitation to, any profit loss, which may either arise directly or indirectly from use of such information.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD bounces from 1.18 after robust German Manufacturing PMI

EUR/USD is trading above 1.18 after German Manufacturing PMI beat estimates. Other PMIs missed expectations. US fiscal stimulus and the election developments are eyed.

EUR/USD News

GBP/USD retreats amid mixed Brexit headlines

GBP/USD has retreated from the highs around 1.31 after UK minister Truss reiterated that the UK could leave without a deal. Ireland´s Coveney expressed more optimism. UK retail sales beat estimates while PMIs were mixed.

GBP/USD News

XAU/USD's reversal from $1,914 contained at $1,895 support area

Gold’s upside attempt witnessed during the Asian and European trading sessions has been halted at $1,914 on the Early US session as market sentiment plunged and the precious metal has dropped to find support at $1,895.

Gold News

Forex Today: Dollar clings to gains after the presidential debate, Bitcoin extends gains, PMIs eyed

The US dollar is holding onto Thursday's recovery, The presidential debate was more civilized than the previous one and post-event opinion polls are awaited. Earlier, hopes for a stimulus bill faded and allowed the dollar to recover. PMIs and COVID-19 statistics stand out on Friday.

Read more

WTI hits one-week low at $39.55 after Baker Hughes’ report

Front-month WTI futures’ reversal from day tops near $41 has extended to one-week lows at $39.55 on Friday after Baker Hughes reported that US oil and gas rigs increased to their highest level since May last week.

Oil News

Forex Majors

Cryptocurrencies

Signatures