EUR/USD unchanged near 1.1170 post-EMU data

EUR/USD keeps the familiar range on EMU data.
EMU advanced Core CPI expected at 1.1% YoY in October.
EMU flash GDP seen expanding 1.1% YoY in Q3.

Pablo Piovano FXStreet

EUR/USD keeps the solid pace in the 1.1170 region on Thursday following key releases in Euroland.

EUR/USD stays bid on data

The upside momentum in the pair remains well and sound so far today after advanced inflation figures in Euroland showed headline consumer prices are expected to raise at an annualized 0.7% (from 0.8%) while Core prices are seen gaining 1.1% (from 1.0%).

In addition, flash GDP figures see the economy in the bloc expanding 1.1% on a yearly basis during the July-September period (from 1.2%).

In the meantime, the persistent weakness around the Greenback continues to sustain the up move in the pair while renewed trade concerns appear to have emerged recently after Chinese officials remain skeptical on the long term trade deal with the US (under the Trump administration).

What to look for around EUR

EUR has managed to return to the upper bound of the monthly range, always on the back of unabated selling pressure in the buck. Despite the October rally in spot has been exclusively sponsored by weakness in the Dollar, the outlook in Euroland remains fragile and does nothing but justify the ‘looser for longer’ monetary stance by the ECB and the bearish view on the single currency in the medium term at least. In addition, the possibility that the German economy could slip into recession in Q3 remains a palpable risk for the outlook and is expected to weigh on EUR in the short/medium term horizon.

EUR/USD levels to watch

At the moment, the pair is gaining 0.19% at 1.1171 and faces the next up barrier at 1.1179 (monthly high Oct.21) seconded by 1.1186 (61.8% Fibo of the 2017-2018 rally) and finally 1.1197 (200-day SMA). On the downside, a breakdown of 1.1072 (low Oct.25) would target 1.1042 (55-day SMA) en route to 1.0925 (low Sep.3).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

Japanese Yen weakens to two-year lows, targets 162.00

USD/JPY extends its advance well north of the 161.00 barrier on Thursday, always on the back of the continuation of the US Dollar's post-Fed rebound and despite warnings from the BoJ of a potential intervention at any time. Next on the upside for spot comes the July 2024 peak in levels just shy of 162.00 the figure.

AUD/USD trims gains, challenges 0.7000

AUD/USD now alternates gains with losses just above the key 0.7000 level ahead of the opening bell in Asia. The pair clinches its third consecutive daily retracement, always on the back of the persistent move higher in the Greenback, particularly following the Fed’s hawkish hold on Wednesday.

Gold drops to daily lows near $4,200

Gold struggles to attract buyers on Thursday, trading closer to the $4,200 mark per troy ounce. The yellow metal adds to Wednesday’s pullback and slips back to multi-day lows in response to the stronger US Dollar following the Fed’s hawkish hold on Wednesday.

XRP vulnerable below key EMA resistance levels

Ripple (XRP) ticks down below $1.20 with short-term support at $1.16 intact at the time of writing on Thursday. An early-week rally was rejected at $1.28, weighing on sentiment as traders broadly de-risked.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.

The next big AI trade may not be about chips or software

Artificial intelligence has already created some of the biggest winners in modern market history. Chipmakers have surged, data centre construction is booming, and electricity demand forecasts are changing globally.