- EUR/USD extends the weekly recovery and revisits the 0.9850 region.
- Germany labour market report surprised to the upside in September.
- EMU Flash Inflation Rate next of importance in the euro docket.
The optimism around the European currency remains well in place for another session and this time lifts EUR/USD to fresh tops in the mid-0.9800s on Friday.
EUR/USD focuses on EMU, US data
EUR/USD advances for the third session in a row on Friday and extends further the bounce off the recent 20-year lows in the proximity of 0.9530 (September 28), always against the backdrop of the renewed and strong corrective decline in the dollar.
Indeed, the dollar comes under extra pressure and keeps correcting lower amidst the ongoing technical retracement and intense improvement in the risk complex, which eventually lends extra legs to the pair.
Moving forward, advanced inflation figures in the euro area are expected to take centre stage later in the session. Earlier in the day, the German Unemployment Rate stayted unchanged at 5.5% in September and the Unemployment Change rose by 14K persons in the same period.
Across the pond, the August’s PCE will be in the centre of the debate seconded by Personal Income/Spending along with the final print of the Consumer Sentiment for the current month.
Additionally, FOMC’s T.Barkin, L.Brainard, L.Mester, J.Williams and M.Bowman will speak later in the NA session.
What to look for around EUR
EUR/USD’s upside momentum appears unabated for the time being and already breaks above the key 0.9800 hurdle.
In the meantime, price action around the European currency is expected to closely follow dollar dynamics, geopolitical concerns and the Fed-ECB divergence. The latter has been exacerbated further following the latest rate hike by the Fed and the persevering hawkish message from Powell and the rest of his rate-setters peers.
Furthermore, the increasing speculation of a potential recession in the region - which looks propped up by dwindling sentiment gauges as well as an incipient slowdown in some fundamentals – adds to the sour sentiment around the euro
Key events in the euro area this week: EU Emergency Energy Meeting, EMU Flash Inflation Rate, Germany Unemployment Change/Unemployment Rate (Friday).
Eminent issues on the back boiler: Continuation of the ECB hiking cycle. Italian post-elections developments. Fragmentation risks amidst the ECB’s normalization of its monetary conditions. Impact of the war in Ukraine and the persistent energy crunch on the region’s growth prospects and inflation outlook.
EUR/USD levels to watch
So far, the pair is gaining 0.21% at 0.9836 and a break above 0.9853 (weekly high September 30) would target 1.0050 (weekly high September 20) en route to 1.0197 (monthly high September 12). On the flip side, the next support emerges at 0.9535 (2022 low September 28) ahead of 0.9411 (weekly low June 17 2002) and finally 0.9386 (weekly low June 10 2002).
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
AUD/USD loses ground near 0.6550 ahead of the Australian GDP data
The AUD/USD pair extends its downside around the mid-0.6500s during the early Asian session on Wednesday. The downward momentum is driven by the renewed US Dollar demand. Investors await the Australian GDP for the third quarter for fresh impetus.
EUR/USD consolidates at three-week lows near 1.0800 Premium
EUR/USD bottomed at 1.0775, the lowest level since November 15, and then rebounded towards 1.0800. The US Dollar remains resilient in the market despite lower yields and mixed US data. On Wednesday, more job figures are due with the ADP report and Unit Labor Costs data, ahead of Friday's NFP.
Gold drops to $2,020, eyed on US ADP data
Gold loses momentum during the early Asian session on Wednesday. The renewed US Dollar demand drag the yellow metal lower. Meanwhile, the US Dollar Index rebounds to 104.00. The XAU/USD price trades near $2020, up 0.01% for the day.
Bitcoin price hits $44,000 as Coinbase CEO speculates BTC could be key to extending Western civilization
Bitcoin price has revisited levels last seen in April 2022, prior to the collapse of the Terra UST ecosystem. Its foray above the $42,000 psychological level has market watchers enthused, so much so that there are now hyped-up predictions about further gains.
US markets traded in a mixed-bag fashion
US markets traded in a mixed-bag fashion, but the tone of the S&P 500 was rather moody, with losers outpacing winners by a wide margin, all as markets digest a stronger-than-expected November ISM Non-manufacturing survey offset by an unexpected significant decline in October job openings.