- Eurozone sentiment data confirms weak business and consumer confidence.
- Greenback fails to capitalize on strong upsurge seen in consumer spending.
- Coming up: Eurozone GDP and unemployment data.
After posting its lowest weekly close since May of 2017 at 1.1150, the EUR/USD pair staged a recovery on Monday and rose to its highest level in five days at 1.1186. As of writing, the pair was trading at 1.1181, adding 0.3% on a daily basis.
Earlier today, the data published by the European Commission showed that the Consumer Confidence Index in the eurozone dropped to -7.9 in April from -7.2 March while the Industrial Confidence Index fell to -4.1 from -1.6 and the Services Sentiment Index stayed unchanged at 11.5. Despite the mixed data, the oversold nature of the pair didn't allow it to continue to push lower as technical sellers are likely waiting for a correction before committing to another leg down.
On the other hand, the greenback came under modest selling pressure following today's data releases and is now looking to close the day in the negative territory below the 98 mark.
The U.S. Bureau of Economic Analysis today reported that the core Personal Consumption Expenditure (PCE) Price Index on a yearly basis continued to move away from the Fed's 2% target as it came in at 1.6% to fall short of the market expectation of 1.7%. Although the underlying details of the report revealed that personal spending increased at its strongest pace since 2009 with 0.9% (MoM), the greenback struggled to gain traction. At the moment, the DXY is down 0.2% on the day at 97.86.
On Tuesday, first-quarter GDP data from the eurozone, which is expected to show a growth of 0.3% on a quarterly basis, will be looked upon for fresh impetus. Nevertheless, the pair's latest price action seems to be driven by the greenback's market valuation rather than a reaction to data from the euro area. Meanwhile, ahead of Wednesday's FOMC announcements, the greenback could continue to correct last week's gains and help the pair push higher.
Technical levels to consider
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
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.