EUR/USD Current price: 1.0814
- Upbeat European growth-related figures gave a temporal boost to the Euro.
- The US Dollar surged on mixed American data, but the focus remains on the US election’s outcome.
- EUR/USD trimmed early gains and has room to extend its slide below 1.0800.
The EUR/USD pair jumped to 1.0858 during European trading hours, as the Euro found strength in local data. Germany released the preliminary estimate of the Q3 Gross Domestic Product (GDP), which showed that the local economy expanded by 0.2% in the three months to June, recovering from a -0.1% in the previous quarter and beating a similar expected figure.
The Eurozone Q3 preliminary GDP also beat expectations. The economy grew 0.4% on a quarterly basis and 0.9% compared to the third quarter of 2023.
The US Dollar, however, recovered some ground ahead of the next batch of data releases. On the one hand the United States (US) published the ADP report on Employment Change, showing the private sector added 233,000 new positions in October, much better than the 115,000 expected.
But the star of the day was the US Q3 GDP. According to preliminary estimates, the economy grew at an annualized pace of 2.8%, below the 3% expected the previous. The same report showed an uptick in inflation in the three months to June, as the core Personal Consumption Expenditures (PCE) Price Index rose by 2.2%, easing from the previous 2.8% but above the 2.1% expected.
Finally, Germany published the October Harmonized Index of Consumer Prices (HICP). Preliminary estimate inflationary pressures were higher than anticipated, as the monthly HICP rose 0.4%, while the annualized figure posted 2%, up from the previous 1.6% and above the 1.8% anticipated.
The EUR/USD pair showed limited reaction to the latest news as US data was not enough to twist the Federal Reserve’s (Fed) hand, while higher German inflation partially offset encouraging growth-related figures. The focus remains on the US election outcome, with a sour sentiment shaping up early in the American session
EUR/USD short-term technical outlook
The EUR/USD pair trades around its daily opening and technical readings in the daily chart show the risk remains skewed to the downside. The intraday advance stalled just below a flat 200 Simple Moving Average (SMA), while the 20 SMA is about to cross below it with a sharp downward slope. Technical indicators, in the meantime, lack directional strength but hold below their midlines, in line with absent buying interest.
In the near term, and according to the 4-hour chart, it seems bears are in control. EUR/USD is currently battling a flat 20 SMA, while a bearish 100 SMA provides dynamic resistance at around 1.0865. Technical indicators, in the meantime, have turned sharply higher but remain above their midlines.
Support levels: 1.0795 1.0755 1.0710
Resistance levels: 1.0865 1.0900 1.0940
(This story was corrected on October 30 at 15:06 GMT to state the annualized HICP in Germany posted 2.4% in October, up from the previous 1.8% and above the 2.1% anticipated, not 2%, 1.6% and 1.8%, respectively.)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD stays near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.