- EURUSD struggles around 1.0350 in the absence of any possible triggers.
- The Fed’s Brainard supported the view to cut the pace of rate hikes given the sharp drop in the October inflation report.
- Looking ahead, the GDP of the Eurozone will be of paramount importance.
The pair EURUSD it is sensing a limited upside around 1.0350 in the Japan session. The market mood, due to the absence of a possible trigger, has pushed currencies into a range structure. Generally speaking, the asset is showing choppy moves in a 1.0271-1.0350 range since Monday’s session.
The dollar index (DXY) rises are constrained by the increasing likelihood of a slowdown in the pace of rate hikes by the Federal Reserve (Fed). While US midterm election anxiety is providing a bit of a cushion to the mighty DXY to the downside.
The possibility of the US House of Representatives being handed over to the Republicans put pressure on the S&P 500. A Republican majority victory will not help any dovish policies announced later, as those policies will have to go through the confirmation from Republicans before his execution.
The rebound movement in 10-year US Treasury yields remained modest to approach 3.87%, as CME’s FedWatch tool says the chances of a fifth consecutive 75 basis point (bp) rate hike on policy December monetary prices are extremely low.
Likewise, Fed Vice Chair Lael Brainard supported the view to reduce the pace of policy tightening. She cited that “it will soon be appropriate for the Federal Reserve to slow its rate hikes” in an interview with Bloomberg.
In the Eurozone, the Gross Domestic Product (GDP) data will be extremely important. According to the consensus, annual GDP is expected to remain stable at 2.1%. The economy is facing turmoil stemming from rising inflation, the energy crisis and bottlenecks in the supply chain due to tensions between Russia and Ukraine. Therefore, stable GDP data could be support for the shared currency.
|Last price today||1.0329|
|today’s daily change||-0.0029|
|Today’s daily change in %||-0.28|
|today’s daily opening||1.0358|
|previous daily high||1.0364|
|previous daily low||1.0163|
|Previous Weekly High||1.0364|
|previous weekly low||0.9903|
|Previous Monthly High||1.0094|
|Previous monthly minimum||0.9632|
|Daily Fibonacci of 38.2%||1.0287|
|Daily Fibonacci of 61.8%||1,024|
|Daily Pivot Point S1||1.0226|
|Daily Pivot Point S2||1.0094|
|Daily Pivot Point S3||1.0025|
|Daily Pivot Point R1||1.0427|
|Daily Pivot Point R2||1.0496|
|Daily Pivot Point R3||1.0628|
Source: Fx Street
I am a writer for World Stock Market. I have been working in finance for over 7-8 years, and I have experience with a variety of financial instruments. My work has taken me to Japan, China, Europe, and the United States. I speak Japanese and Chinese fluently.