EUR/USD remains capped under the 1.1000 barrier, focus on German PPI data

EUR/USD loses its recovery momentum around 1.0973 in Wednesday’s early Asian session.
The Eurozone HICP for November came in at -0.6% MoM vs. -0.5% prior, weaker than expected.
The US housing data showed mixed readings on Tuesday.
Market players will focus on the German Producer Price Index (PPI), and US Existing Home Sales.

Lallalit Srijandorn FXStreet

The EUR/USD pair trades with mild losses and remains capped under the 1.1000 psychological mark during the early Asian trading hours on Wednesday. The upside looks favorable for the major amid the US Dollar (USD) weakness. EUR/USD currently trades near 1.0973, losing 0.04% on the day.

Data from Eurostat on Tuesday showed that Eurozone inflation missed market expectations in November due to the fall in energy prices. The Eurozone Harmonized Index of Consumer Prices (HICP) for November came in at -0.6% MoM versus -0.5% prior, weaker than expected. The annual euro area inflation arrived at 2.4%, in line with analyst expectations. The Core HICP figures, which exclude volatile food and energy prices, came in at 3.6% YoY, the lowest reading since April 2022.

The European Central Bank (ECB) stated after its recent monetary policy meeting that the central bank did not discuss rate cuts at all while warning that inflation could spike again in December due to colder weather, which increases energy demand and prices. This, in turn, might cap the upside of the Euro (EUR) and act as a headwind for the EUR/USD pair.

Across the pond, Building Permits fell to 1.46M in November from 1.498M in October, weaker than the market estimation of 1.47M. Housing Starts rose to 1.56M in November from 1.359M in the previous reading, above the consensus of 1.36M, the US Census Bureau revealed on Tuesday.

Later on Wednesday, traders will focus on the German Producer Price Index (PPI) for November, Eurozone October's Current Account, Construction Output, and December’s Consumer Confidence. On the US docket, the Existing Home Sales will be released.

EUR/USD

Overview
Today last price	1.0973
Today Daily Change	-0.0005
Today Daily Change %	-0.05
Today daily open	1.0978

Trends
Daily SMA20	1.088
Daily SMA50	1.0754
Daily SMA100	1.0754
Daily SMA200	1.0832

Levels
Previous Daily High	1.0987
Previous Daily Low	1.0915
Previous Weekly High	1.1009
Previous Weekly Low	1.0742
Previous Monthly High	1.1017
Previous Monthly Low	1.0517
Daily Fibonacci 38.2%	1.096
Daily Fibonacci 61.8%	1.0943
Daily Pivot Point S1	1.0933
Daily Pivot Point S2	1.0888
Daily Pivot Point S3	1.0861
Daily Pivot Point R1	1.1006
Daily Pivot Point R2	1.1033
Daily Pivot Point R3	1.1078

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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