- EUR / USD remains at recent lows around 1.1600.
- The ECB meets later on Thursday to focus on the PEPP and inflation.
- The US will publish the first estimate of GDP for the third quarter.
The common currency remains unable to muster any serious pull in either direction, leading to the EUR / USD to move within a narrow range near recent lows just below the 1.1600 level.
EUR / USD focuses attention on data and the ECB
EUR / USD extends erratic moves around the 1.1600 zone on Thursday, amid a growing caution among market participants ahead of the ECB’s key monetary policy meeting to be held later in the day.
The stability around the USD also accompanies the lateral movement of the pair despite the fact that the feeling of appetite for risk is maintained in the markets during the European session.
The dollar suffered from the sharp pullback in US yields in recent days, particularly on longer-maturing bonds, while the short side of the curve continues to rise and is trading at levels last seen in March 2020.
On the economic calendar, the German labor market report will focus later in the session followed by preliminary inflation figures for October in Germany. Still in the euro zone, The ECB is expected to reaffirm the pessimistic stance at its meeting today, where the views of the Governing Council on the current high inflation will be at the center of the debate along with the continuation and / or termination of the current stimulus program.
Across the Atlantic, all attention will be on the publication of GDP for the third quarter along with initial weekly jobless claims and pending home sales.
EUR / USD levels
At the time of writing, the EUR / USD is down -0.06% on the day, trading at 1.1596. The next resistance is at 1.1669 (October 19 high), followed by 1.1699 (55-day SMA) and finally 1.1755 (September 22 high). On the other hand, a break below 1.1584 (October 26 low) would head to 1.1571 (October 18 low) on its way to 1.1524 (October 12 low).
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