- EUR/USD licks its wounds at the lowest levels in 19 months, recently easing from intraday high.
- Markets remain lackluster amid mixed concerns over Russia-Ukraine and softer start to Friday.
- ECB’s Kazimir expects near-term increase in inflation, improvement in German Consumer Confidence teases ECB hawks ahead of key GDP.
- US Q4 GDP jumped, inflation expectations gained but PCE Price Index awaited.
EUR/USD hovers around 1.1150 during a sluggish Friday morning as markets take a breather following the heavily volatile session post-Fed.
In doing so, the major currency pair rebounds from the lowest levels since June 2020, flashed the previous day, also snapping the four-day downtrend. Even so, the quote braces for the biggest weekly fall since mid-June 2021.
That said, the market’s latest indecision could be linked to the cautious mood ahead of preliminary readings of German Q4 GDP, expected -0.3% versus +1.7% prior, as well as the US Core PCE Price Index figures for December, forecast +4.8% YoY versus 4.7% prior.
It should be noted that the mixed concerns over the fears of Russia’s invasion of Ukraine and associated risks to the bloc also probe the EUR/USD traders. At the latest, US President Joe Biden talked with his Ukrainian counterpart Volodymyr Oleksandrovych Zelenskyy while showing readiness to offer more economic support.
Amid these plays, the benchmark US 10-year Treasury yields stay firmer around 1.81%, after declining the most in a month the previous day whereas the S&P 500 Futures also print mild gains around 4,330 by the press time.
On Thursday, the German GfK Consumer Confidence Survey showed improvement in the final figure of -6.7, versus -7.8% expected and -6.9 prior. Elsewhere, Advance Q4 US GDP rose 6.9% annualized versus 5.5% market consensus and 2.3% prior. On the same line was the US Initial Jobless Claims for the week ended in January 21that came in 206K compared to 260K expected and 290K previous. Further, the US Durable Goods Orders for December dropped by -0.9% for December, below -0.5% market consensus.
Looking forward, the initial readings of German GDP will help the ECB hawks, especially from Bundesbank. Though, the EUR/USD buyers have a long way to go.
A clear downside break of the mid-June 2020 swing low near 1.1165 directs EUR/USD prices towards an early May 2020 high of 1.1018. Also acting as an upside filter is the year 2021 bottom surrounding 1.1185.
Additional important levels
|Today last price||1.1151|
|Today Daily Change||0.0008|
|Today Daily Change %||0.07%|
|Today daily open||1.1143|
|Previous Daily High||1.1244|
|Previous Daily Low||1.1132|
|Previous Weekly High||1.1434|
|Previous Weekly Low||1.1301|
|Previous Monthly High||1.1386|
|Previous Monthly Low||1.1222|
|Daily Fibonacci 38.2%||1.1175|
|Daily Fibonacci 61.8%||1.1201|
|Daily Pivot Point S1||1.1102|
|Daily Pivot Point S2||1.1061|
|Daily Pivot Point S3||1.099|
|Daily Pivot Point R1||1.1214|
|Daily Pivot Point R2||1.1285|
|Daily Pivot Point R3||1.1326|
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.