EURUSD – Euro steady as Eurozone CPI meets expectations

Kenny Fisher MarketPulse

EUR/USD is showing little movement in the Friday session. Currently, the pair is trading at 1.1382, up 0.07% on the day. In economic news, Eurozone Final CPI improved to 2.1%, matching the estimate. The eurozone current account surplus widened to EUR 23.5 billion, above the estimate of EUR 23.2 billion. In the U.S, the key event is Preliminary UoM Consumer Sentiment, which is expected to improve to 98.1 points.

There were no surprises from eurozone inflation readings in July, as Final CPI and Final Core CPI both matched expectations. Final CPI came in at 2.1%, edging above the 2.0% gain in June. Final Core CPI followed the same trend, with a gain of 1.1%, compared to 0.9% in June. Inflation remains well below the ECB target of just below 2.0%, so there is no pressure on the ECB to raise interest rates. The focus remains on the ECB’s asset-purchase program, which is expected to wind up in December.

The euro has endured a rough August, losing 2.7 percent in that time. Weak growth in the eurozone and trade tensions with the U.S have affected investor sentiment, and the euro has struggled as a result, trading this week at 14-month lows against a strong U.S dollar. However, the euro’s fortunes could improve, with news that the U.S and China will be holding trade talks. The negotiations will be handled by low-level officials and are being billed as ‘talks about talks’. Still, the fact that the two sides are talking rather than slapping tariffs against each other should raise risk appetite and give the euro a boost.

Dollar softens amid greater risk appetite

EUR/USD Fundamentals

4:00 Eurozone Current Account. Estimate 23.2B. Actual 23.5B
5:00 Eurozone Final CPI. Estimate 2.1%. Actual 2.1%
5:00 Eurozone Final Core CPI. Estimate 1.1%. Actual 1.1%
10:00 US Preliminary UoM Consumer Sentiment. Estimate 98.1
10:00 US CB Leading Index. Estimate 0.4%
10:00 US Preliminary UoM Inflation Expectations

Open: 1.1376 High: 1.1420 Low: 1.1336 Close: 1.1382

EUR/USD Technical

S1	S2	S1	R1	R2	R3
1.0951	1.1119	1.1312	1.1434	1.1553	1.1637

EUR/USD was flat in the Asian session and has inched higher in European trade

1.1312 is providing support
1.1434 is the next resistance line. This line was under pressure earlier in the Friday session

Further levels in both directions:

Below: 1.1312, 1.1119 and 1.0951
Above: 1.1434, 1.1553 and 1.1637
Current range: 1.1312 to 1.1434

Author

Kenny Fisher

MarketPulse

A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities.

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD inches lower during the Asian hours on Monday, trading around 1.1870 at the time of writing. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming improving momentum. RSI has cooled from prior overbought readings but stabilizes above 50, suggesting dips could stay limited before buyers reassert control.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold slides below $5,000 amid USD uptick and positive risk tone; downside seems limited

Gold attracts fresh sellers at the start of a new week and reverses a part of Friday's strong move up of over $150 from sub-$4,900 levels. The commodity slides back below the $5,000 psychological mark during the Asian session, though the downside potential seems limited amid a combination of supporting factors.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.