Dear ,
As requested, let’s look at EURUSD and the recent events that happened in the previous trading session.
EURUSD Analysis
Performance after Tuesday | |||||
Period | Pct | Chg | Momentum | ||
Tuesday | -0.01% | -0.6 Pips | |||
Week to-date | 0.21% | 23 Pips | |||
October | -2.85% | -317 Pips |
Upcoming key events (London Time)
Wed 09:00 AM EUR GDP (3-mth)
Wed 10:00 AM EUR GDP (seasonally adjusted) (3-mth)
Wed 12:30 PM USD GDP annual rate
Wed 01:00 PM EUR CPI Inflation Rate (12-mth)
Thu 10:00 AM EUR Harmonised Index of Consumer Prices (HICP) (12-mth)
Thu 12:30 PM USD PCE Price Index, excluding food and energy (12-mth)
What happened lately
The Gfk Consumer Confidence Survey in Germany has shown a positive trend, with consumer sentiment rising from -21 points in October to -18.3 points in November. This improvement indicates an increasing optimism among consumers regarding the economic outlook, which could be attributed to various factors such as government initiatives, market expectations, or other positive developments in the economic climate of Germany. Such a rise in consumer confidence could potentially lead to increased consumer spending, stimulating further economic growth.
In terms of its effect on the EURUSD, the current data shows that the euro saw a minute drop of -0.01% against the US dollar, landing at 1.08196. However, the currency pair is undergoing consolidation, meaning that it may not have shown significant directional movement yet. The improved consumer confidence in Germany might strengthen the euro in anticipation of rising consumer spending, as consumer sentiment can be a leading indicator of economic recovery.
Future significant events are likely to impact the EURUSD exchange rate further. Among them are the upcoming high-impact reports including the EUR GDP and CPI Inflation Rate, which will be released on Wednesday, and the Harmonised Index of Consumer Prices on Thursday. These will provide deeper insights into the economic health of the Eurozone. Equally important will be the U.S. GDP annual rate and PCE Price Index announcements, which could drive the USD price action significantly.
In summary, while the improved German consumer confidence is a positive indicator for the Euro, its immediate impact on the EURUSD has been restrained. However, the future trajectory of EURUSD will heavily rely on imminent economic reports from both the Eurozone and the U.S., which will offer further guidance to traders and investors on the likely monetary policy actions from the European Central Bank and the Federal Reserve. As such, markets will closely analyze these economic reports before making substantial movements in the exchange rate. Further insights from these data releases will be crucial in determining if the improved consumer confidence in Germany translates into broader economic strengthening and could provide a basis for the euro gaining ground against the dollar. Source of consumer confidence data: GfK Consumer Confidence Survey.
What can we expect from EURUSD today?
EURUSD on Tuesday dropped -0.01% to 1.08196. Price is below 9-Day EMA while Stochastic is rising.
Updated daily direction for EURUSD looks mixed as the pair is likely to consolidate above 1.07834 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 1.08263 or trades above daily pivot 1.08049. Break above could target R1 at 1.0841. While to the downside, we are looking at 1.07834 (S1) and daily low of 1.07687 as support levels. EURUSD need to break on either side to indicate a short-term bias. A close below 1.07687 would indicate selling pressure.
For the week to-date, take note that EURUSD is mixed as compared to the prior week.
Key levels to watch out:
R3 | 1.08986 |
R2 | 1.08625 |
R1 | 1.0841 |
Daily Pivot | 1.08049 |
S1 | 1.07834 |
S2 | 1.07473 |
S3 | 1.07258 |