EUR/USD rises to weekly tops near 1.1170 ahead of key Eurozone data

The EUR/USD pair extends its bullish momentum into a fourth day this Thursday, mainly benefiting from broad-based US dollar weakness, as the latest US Federal Reserve (Fed) rate cut continues to keep the sentiment sombre around the greenback and Treasury yields.

Eurozone data – Key event risks ahead

The Fed delivered on a widely expected 25-bps rate cut in the US last session, however, hinted a pause in future rate cuts. Despite the hawkish Fed rate cut and Fed Chair Powell’s upbeat remarks on the US economy, the US dollar was downed across the board after the knee-jerk spike, as markets continue to remain worried about the impact of the rate cuts on the economy and looming US-China trade risks.

This was reflected by the selling interest around the Treasury yields and the extension of the overnight losses in the greenback vs. its main peers, as we progress towards the European opening bells.

Meanwhile, on the EUR-side of the equation, the further upside in the spot now remains dependent on the upcoming Eurozone flash CPIs and GDP releases, due later today at 1000 GMT. The annualized Eurozone Q3 Preliminary GDP number is seen falling to 1.1% vs. 1.2% previous while on a quarterly basis, the data is seen arriving at 0.1% in Q3 vs. 0.2% last. The inflation figures are seen a touch softer in October.

Below-forecast Eurozone data could stall the ongoing bullish momentum in the major and send the rates back below the 1.1150 level. However, the bulls are likely to re-attempt the 1.12 handle on a positive surprise.

Looking ahead, the EUR/USD price-action could also likely remain at the mercy of the USD dynamics heading into the key US macro releases and amid ongoing jitters around the US-China trade deal.

EUR/USD Technical levels