EURUSD continues to struggle around 1.0350 with a view to Eurozone GDP

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  • 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.

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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.

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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.

EUR/USD

Overview
Last price today 1.0329
today’s daily change -0.0029
Today’s daily change in % -0.28
today’s daily opening 1.0358
Trends
daily SMA20 0.9946
daily SMA50 0.9893
daily SMA100 1.0032
daily SMA200 1,044
levels
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

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