EUR/USD holds steady amid mixed US economic data, Fed comments

EUR/USD remains stable, trading around 1.0850, despite a dip to 1.0895 earlier in the session.
US economic indicators show signs of strain from higher interest rates, with rising unemployment claims and a drop in industrial production.
Euro's resilience is bolstered by a weaker US Dollar and improved risk sentiment despite concerns of stagflation in the Eurozone.

Christian Borjon Valencia FXStreet

EUR/USD stays firm during the North American session, almost unchanged, printing gains of 0.06%, and exchanging hands at around 1.0850s after hitting a daily low of 1.0895, shy of challenging the 1.0900 figure.

Euro keeps gains vs. weakening US Dollar, market eyes EU’s inflation, Lagarde speech

Economic data in the United States (US) continues to feel the lagging impact of higher interest rates set by the Federal Reserve. The US Bureau of Labor Statistics (BLS) revealed that unemployment claims for the last week rose the most in the last three months while Industrial Production plunged. US export and import prices cooled down, signs that the inflation battle continued to be won by the US central bank.

Nevertheless, Fed officials pushed back against estimates for more than 88 bps of rate cuts next year. Cleveland’s Fed President Loretta Mester added that whether further tightening is needed would be data-dependent. Lately, Fed Governor Lisa Cook said, “a soft landing is possible,” though added that continued demand could slow the pace of disinflation.

In the meantime, the Greenback is feeling the pain, depreciating further against most G8 currencies, including the Euro (EUR). The US Dollar Index (DXY) is a measurement of the performance of six currencies against the buck, favoring the former, as the DXY drops 0.06%, down at 104.32.

On the Eurozone (EU) front, the European Central Bank (ECB) President Christine Lagarde crossed the wires but failed to comment on monetary policy. The Euro’s rise could be attributed by overall US Dollar weakness and risk appetite improvement. Recent data from the EU, with soft PMI, GDP for Q3 contracting, and Industrial Production sinking, paints a stagflation scenario in the bloc. Hence, that could weigh on the single currency.

Ahead in the economic calendar, the EU’s docket will feature the Harmonized Index of Consumer Prices (HICP), and a speech of the ECB’s President Lagarde. In the US, housing data, Building Permits, and Fed speakers are expected to offer fresh impetus to EUR/USD traders.

EUR/USD Technical Levels

EUR/USD

Overview
Today last price	1.086
Today Daily Change	0.0017
Today Daily Change %	0.16
Today daily open	1.0843

Trends
Daily SMA20	1.0657
Daily SMA50	1.0626
Daily SMA100	1.0792
Daily SMA200	1.0804

Levels
Previous Daily High	1.0886
Previous Daily Low	1.0832
Previous Weekly High	1.0756
Previous Weekly Low	1.0656
Previous Monthly High	1.0695
Previous Monthly Low	1.0448
Daily Fibonacci 38.2%	1.0852
Daily Fibonacci 61.8%	1.0865
Daily Pivot Point S1	1.0821
Daily Pivot Point S2	1.0799
Daily Pivot Point S3	1.0767
Daily Pivot Point R1	1.0876
Daily Pivot Point R2	1.0908
Daily Pivot Point R3	1.093

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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