- The dollar tries to recover some of the ground lost last week in the market.
- EURUSD corrects lower, remains well above the levels of a week ago.
- Eurozone: Industrial Production rises 0.9% in September, beating expectations.
The EURUSD extended decline from highs in months and after having the best week since 2020, and posted new daily lows at 1.0285. This occurs in the face of a moderate rise in the dollar in the market, which is trying to cut a negative streak
Thursday’s US inflation data, pointing to a slowdown in the pace of the Fed’s tightening cycle, triggered a dollar slide. At the beginning of the week it recovers ground. The Dollar Index (DXY) is up 0.70% and trading above 107.00, rebounding from mid-August lows. Treasury bond yields rise modestly supporting the greenback. Wall Street futures are trading in the red.
An increase in industrial production in the Eurozone of 0.9% was known in September, higher than the 0.3% market consensus. The data had no impact on the market. For his part, the ECB official, Fabio Panetta, stated that it is necessary to continue adjusting monetary policy, although he warned of the dangers of going beyond what is necessary. In the US there will be no relevant data on Monday and the Vice President of the Fed Brainard will present. The Producer Price Index will arrive on Tuesday.
The EURUSD maintains its bullish tone, although in the very short term it is correcting after rising more than 300 pips in two days. At 1.0275 the first support appears, followed by 1.0250 and then 1.0220. To the upside, 1.0300 may become the first resistance followed by 1.0330, then 1.0350 and above that the focus will shift to the rally high at 1.0362.
Technical levels
Source: Fx Street
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