- The slowdown in the US economy and high inflationary pressures keep the Federal Reserve focused on price stability.
- Mixed data on US employment and recovery in US bonds contribute to weakening the Dollar.
The Euro extended its losses against the US Dollar in the early part of Wednesday, even as US economic data shows the economy is slowing, but high inflationary pressures keep the US Federal Reserve .under pressure to achieve price stability. The EUR/USD pair is trading above 1.0540, falling 0.32% daily.
EUR/USD falls 0.32% as mixed US data and ECB pause in tightening cycle weigh on Euro
US economic data deteriorated the outlook for the US dollar. Employment data released by Automatic Data Processing (ADP) showed that private hiring advanced more than in September, but missed estimates by a substantial amount. Later, the US Bureau of Labor Statistics (BLS) announced that job openings rose above estimates and figures from the previous reading, with September JOLTs reaching 9.553M, up from 9.25M expected and 9.47M from previous data.
Other data showed that the US Treasury Department is expected to auction 112 billion, below the 114 billion estimated by analysts, in its quarterly refund, triggering a rally in US bonds to the detriment of yields. from the country.
Furthermore, business activity on the manufacturing front is losing steam, as the October ISM manufacturing PMI fell below the 50 contraction/expansion threshold for twelve consecutive months, supported by the drop in new orders, while the of prices rose.
In the Eurozone, the lack of economic data on Wednesday left traders adrift from the region’s figures and Tuesday’s inflation data, which justified the pause of the European Central Bank (ECB) in its tightening cycle, as that inflation fell below the 3% threshold.
EUR/USD Price Analysis: Technical Outlook
The EUR/USD bearish trend remains intact, and could accelerate if the pair manages a daily close below the lower trend line of the bearish flag. Once broken, the next support would be the October 13 swing low at 1.0495, before extending its decline to the October low at 1.0448. On the contrary, if the pair remains above the lower trend line, a test of the 1.0550 mark is expected, before 1.0600.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
