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EUR/USD loses traction near 1.0500, investors await Eurozone CPI, US GDP data

  • EUR/USD loses traction amid the firmer US dollar and upbeat US data.
  • German Consumer Sentiment fell to -26.5 in October from -25.6 in September.
  • US Durable Goods Orders improved in August, climbing 0.2% m/m vs. -5.6% prior.
  • Traders will monitor Eurozone CPI, US GDP due later on Thursday.

The EUR/USD pair loses momentum around 1.0500  during the early Asian session on Thursday. The selling pressure of the major pair is supported by the firmer US Dollar (USD), higher US economic data, and higher Treasury yield. EUR/USD currently trades near 1.0512, gaining 0.09% for the day.

Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD relative to a basket of foreign currencies, climbs to 106.60, the highest since November whereas US Treasury yields edge higher with the 10-year Treasury yield settled at 4.618%, its highest level since 2007.

The downbeat Eurozone economic data exert some selling pressure on the Euro and acts as a headwind for the EUR/USD pair. German Consumer Sentiment revealed by GfK fell to -26.5 in October from -25.6 in September. Furthermore, Spain and Germany will publish preliminary September Consumer Price Index (CPI) numbers. Spanish annual inflation is expected to rise, while German inflation will likely decline. These initial inflation figures are crucial for shaping monetary policy expectations and can impact the markets.

Across the pond, the US Census Bureau revealed on Wednesday that US Durable Goods Orders improved in August, climbing 0.2% m/m from the previous reading's 5.6% fall, compared to estimates for a 0.5% m/m drop. Furthermore, Durable Goods Orders Excluding Transportation rose by 0.4% m/m, above the 0.1% gain anticipated. Core capital goods orders grew 0.9% from the previous month's figure of 0.4%, above the market estimate of 0%. Following the better-than-expected US data, the Greenback gains traction across the board, acting as a headwind for the EUR/USD pair.

Markets were driven by risk-aversion as investors weighed higher for longer rates narrative against growth risks from the possibility of an imminent government shutdown in the US. Traders will monitor Federal Reserve (Fed) Chair Jerome Powell's address this week for fresh catalysts. The less hawkish tone of officials may limit the USD's upside and lift the Euro.

Looking ahead, market players await the preliminary Spanish and German inflation data for September. Also, the Eurozone's Consumer and Business Confidence data will be released on Thursday. On the US docket, the US weekly Jobless Claims report, the third revision of Gross Domestic Product (GDP) for the second quarter and Pending Home Sales data will be released on Thursday. The attention will shift to the US Core Personal Consumption Expenditure (PCE) Price Index on Friday. The annual figure is expected to ease from 4.2% to 3.9%. Traders will take cues from the data and find a clear direction of the EUR/USD pair.

EUR/USD

Overview
Today last price1.0511
Today Daily Change0.0008
Today Daily Change %0.08
Today daily open1.0503
 
Trends
Daily SMA201.069
Daily SMA501.0845
Daily SMA1001.0865
Daily SMA2001.0829
 
Levels
Previous Daily High1.0575
Previous Daily Low1.0488
Previous Weekly High1.0737
Previous Weekly Low1.0615
Previous Monthly High1.1065
Previous Monthly Low1.0766
Daily Fibonacci 38.2%1.0521
Daily Fibonacci 61.8%1.0542
Daily Pivot Point S11.0469
Daily Pivot Point S21.0435
Daily Pivot Point S31.0383
Daily Pivot Point R11.0556
Daily Pivot Point R21.0608
Daily Pivot Point R31.0642

Author

Lallalit Srijandorn

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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