- The Euro experiences a slight rebound on Friday, after falling steadily during the week.
- Concerns are growing that the ECB will have to act more to limit inflation.
- Upcoming events: EU GDP and US CPI inflation will be released on Tuesday.
The pair EUR/USD is seeing a slight bounce on Friday, while the US Dollar (USD) cools after a week of steady gains that led the Euro (EUR) to fall almost 1% from Monday’s high of 1.0756.
EU data was relatively sparse this week, with markets mostly focused on central bank numbers. European Central Bank (ECB) President Christine Lagarde avoided making waves during a public appearance on Friday, and markets are still chewing on developments after Federal Reserve (Fed) Chair Jerome Powell made some unexpected aggressive comments on Thursday.
Fed Chairman Powell noted that the Fed is not entirely confident that it has done enough to curb inflation, and markets were uncorked by these statements.
EU GDP and US CPI in focus for next week
EU Gross Domestic Product (GDP) figures will be published on Tuesday, followed by US Consumer Price Index (CPI) inflation figures.
EU GDP for the third quarter is expected to remain stable in both monthly and annualized figures, with forecasts of -0.1% and 0.1% respectively.
In the United States, the general CPI for October would decline from 0.4% to 0.1%, while the annual core CPI would remain at 4.1%.
With the Fed’s hawkish stance and renewed market focus on central bank statements, next week’s growth and inflation figures will have a greater impact if they deviate from forecasts.
EUR/USD Technical Outlook
The euro has spent most of the week stuck at the 1.0700 price level following Monday’s clear rejection from 1.0750.
EUR/USD has been capped by the 200-day moving average (SMA) near 1.0800, with a bearish 50-day SMA putting a floor under prices, leaving the pair stuck in the middle as prices consolidate between moving averages.
Despite falling more than 5% from July highs near 1.1275, the EUR/USD pair has been rising from the early October low at 1.0450.
EUR/USD Daily Chart
EUR/USD technical levels
|Latest price today||1.0685|
|Today I change daily||0.0021|
|Today’s daily variation||0.20|
|Today’s daily opening||1.0664|
|Previous daily high||1.0725|
|Previous daily low||1,066|
|Previous weekly high||1.0747|
|Previous weekly low||1.0517|
|Previous Monthly High||1.0695|
|Previous monthly low||1.0448|
|Daily Fibonacci 38.2||1.0685|
|Fibonacci 61.8% daily||1.0701|
|Daily Pivot Point S1||1.0641|
|Daily Pivot Point S2||1.0618|
|Daily Pivot Point S3||1.0576|
|Daily Pivot Point R1||1.0706|
|Daily Pivot Point R2||1.0748|
|Daily Pivot Point R3||1.0771|
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.