EUR/USD gains ground below the 1.1000 mark, focus on US CPI data

EUR/USD attracts some buyers amid the USD softness.
ECB’s de Cos said risks to economic growth remain skewed to the downside.
The markets anticipate the Fed to begin cutting rates as early as March, but the Fed’s Williams pushed back against the expectation.
The US Consumer Price Index (CPI) for December will be a closely watched event on Thursday.

Lallalit Srijandorn FXStreet

The EUR/USD pair edges higher for the second consecutive day during the early Asian trading hours on Thursday. The rebound of the major pair is bolstered by the softer US Dollar (USD) broadly. Traders await the release of the US Consumer Price Index (CPI) for fresh impetus on Thursday, which is estimated to show an increase of 0.2% MoM and 0.3% YoY in December. At press time, EUR/USD is trading at 1.0977, up 0.11% on the day.

Late Wednesday, the European Central Bank (ECB) Governing Council member Pablo Hernandez de Cos said that the euro area probably failed to grow in the final three months of 2023 and the central bank will pay attention in the coming months to different developments that may condition the trajectory of inflation and its monetary policy action

ECB Vice President Luis de Guindos stated that the Eurozone's economy may have entered a recession last quarter, and its prospects are gloomy. He also supports the current level of interest rates. Meanwhile, the ECB’s member, Isabel Schnabel emphasized that the central bank is on the right track to curb inflation. She also mentioned geopolitical tensions as one of the upside risks to inflation.

Across the pond, the financial markets anticipate the Federal Reserve (Fed) to begin cutting rates as early as March, but New York Fed President John Williams and other officials have been pushing back against the idea. Williams said that interest rates in the US will likely need to stay high “for some time” until the central bank is confident that inflation is returning to 2%.

The Industrial Output from Spain and Italy, and the Economic Bulletin will be due on Thursday. Nonetheless, the December US CPI report in the American session will be the highlight. Traders will take cues from this data and find trading opportunities around the EUR/USD pair.

EUR/USD

Overview
Today last price	1.0978
Today Daily Change	0.0012
Today Daily Change %	0.11
Today daily open	1.0966

Trends
Daily SMA20	1.0982
Daily SMA50	1.0886
Daily SMA100	1.0765
Daily SMA200	1.0847

Levels
Previous Daily High	1.0973
Previous Daily Low	1.0923
Previous Weekly High	1.1046
Previous Weekly Low	1.0877
Previous Monthly High	1.114
Previous Monthly Low	1.0724
Daily Fibonacci 38.2%	1.0954
Daily Fibonacci 61.8%	1.0942
Daily Pivot Point S1	1.0935
Daily Pivot Point S2	1.0904
Daily Pivot Point S3	1.0885
Daily Pivot Point R1	1.0985
Daily Pivot Point R2	1.1004
Daily Pivot Point R3	1.1035

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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