|

EUR/USD loses traction near 1.0500, investors await Eurozone CPI, US GDP data

  • EUR/USD loses traction amid the firmer US dollar and upbeat US data.
  • German Consumer Sentiment fell to -26.5 in October from -25.6 in September.
  • US Durable Goods Orders improved in August, climbing 0.2% m/m vs. -5.6% prior.
  • Traders will monitor Eurozone CPI, US GDP due later on Thursday.

The EUR/USD pair loses momentum around 1.0500  during the early Asian session on Thursday. The selling pressure of the major pair is supported by the firmer US Dollar (USD), higher US economic data, and higher Treasury yield. EUR/USD currently trades near 1.0512, gaining 0.09% for the day.

Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD relative to a basket of foreign currencies, climbs to 106.60, the highest since November whereas US Treasury yields edge higher with the 10-year Treasury yield settled at 4.618%, its highest level since 2007.

The downbeat Eurozone economic data exert some selling pressure on the Euro and acts as a headwind for the EUR/USD pair. German Consumer Sentiment revealed by GfK fell to -26.5 in October from -25.6 in September. Furthermore, Spain and Germany will publish preliminary September Consumer Price Index (CPI) numbers. Spanish annual inflation is expected to rise, while German inflation will likely decline. These initial inflation figures are crucial for shaping monetary policy expectations and can impact the markets.

Across the pond, the US Census Bureau revealed on Wednesday that US Durable Goods Orders improved in August, climbing 0.2% m/m from the previous reading's 5.6% fall, compared to estimates for a 0.5% m/m drop. Furthermore, Durable Goods Orders Excluding Transportation rose by 0.4% m/m, above the 0.1% gain anticipated. Core capital goods orders grew 0.9% from the previous month's figure of 0.4%, above the market estimate of 0%. Following the better-than-expected US data, the Greenback gains traction across the board, acting as a headwind for the EUR/USD pair.

Markets were driven by risk-aversion as investors weighed higher for longer rates narrative against growth risks from the possibility of an imminent government shutdown in the US. Traders will monitor Federal Reserve (Fed) Chair Jerome Powell's address this week for fresh catalysts. The less hawkish tone of officials may limit the USD's upside and lift the Euro.

Looking ahead, market players await the preliminary Spanish and German inflation data for September. Also, the Eurozone's Consumer and Business Confidence data will be released on Thursday. On the US docket, the US weekly Jobless Claims report, the third revision of Gross Domestic Product (GDP) for the second quarter and Pending Home Sales data will be released on Thursday. The attention will shift to the US Core Personal Consumption Expenditure (PCE) Price Index on Friday. The annual figure is expected to ease from 4.2% to 3.9%. Traders will take cues from the data and find a clear direction of the EUR/USD pair.

EUR/USD

Overview
Today last price1.0511
Today Daily Change0.0008
Today Daily Change %0.08
Today daily open1.0503
 
Trends
Daily SMA201.069
Daily SMA501.0845
Daily SMA1001.0865
Daily SMA2001.0829
 
Levels
Previous Daily High1.0575
Previous Daily Low1.0488
Previous Weekly High1.0737
Previous Weekly Low1.0615
Previous Monthly High1.1065
Previous Monthly Low1.0766
Daily Fibonacci 38.2%1.0521
Daily Fibonacci 61.8%1.0542
Daily Pivot Point S11.0469
Daily Pivot Point S21.0435
Daily Pivot Point S31.0383
Daily Pivot Point R11.0556
Daily Pivot Point R21.0608
Daily Pivot Point R31.0642

Author

Lallalit Srijandorn

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

More from Lallalit Srijandorn
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD bounces toward 1.1750 as US Dollar loses strength

EUR/USD returned to the 1.1750 price zone in the American session on Friday, despite falling Wall Street, which indicates risk aversion. Trading conditions remain thin following the New Year holiday and ahead of the weekend, with the focus shifting to US employment and European data scheduled for next week.

GBP/USD nears 1.3500, holds within familiar levels

After testing 1.3400 on the last day of 2025, GBP/USD managed to stage a rebound. Nevertheless, the pair finds it difficult to gather momentum and trades with modest intraday gains at around 1.3490 as market participants remain in holiday mood.

Gold trims intraday gains, approaches $4,300

Gold retreated sharply from the $4,400  area and trades flat for the day in the $4,320 price zone. Choppy trading conditions exacerbated the intraday decline, although XAU/USD bearish case is out of the picture, considering growing expectations for a dovish Fed and persistent geopolitical tensions.

Cardano gains early New Year momentum, bulls target falling wedge breakout

Cardano kicks off the New Year on a positive note and is extending gains, trading above $0.36 at the time of writing on Friday. Improving on-chain and derivatives data point to growing bullish interest, while the technical outlook keeps an upside breakout in focus.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).