EUR/USD remains on the defensive, holds above mid-1.0500s as traders await US PCE Price Index


  • EUR/USD trades with a mild negative bias for the fourth successive day on Friday.
  • An uptick in the US bond yields acts as a tailwind for the USD and exerts pressure.
  • The ECB’s dovish outlook undermines the Euro and contributes to the offered tone.

The EUR/USD pair struggles to capitalize on the previous day's bounce from the 1.0520 area, or over a one-week low and edges lower during the Asian session on Friday. Spot prices trade with a mild negative bias for the fourth straight day, albeit manage to hold just above mid-1.0500s.

A modest uptick in the US Treasury bond yields acts as a tailwind for the US Dollar (USD), which, along with the European Central Bank's (ECB) dovish outlook, turns out to be a key factor acting as a headwind for the EUR/USD pair. Despite signs of easing inflationary pressures in the US, the Federal Reserve (Fed) is expected to stick to its hawkish stance and keep rates higher for longer in the wake of the resilient US economy.

The bets were reaffirmed by the US macro data released on Thursday, which showed that the economy expanded by a 4.9% annualize pace during the third quarter as compared to the 4.2% growth estimated. Furthermore, the US Durable Goods Orders shot up by 4.7% in September, also beating market expectations. This, along with the European Central Bank's (ECB) dovish outlook, continues to weigh on the EUR/USD pair.

As was anticipated, the ECB decided to leave rates unchanged, ending its unprecedented streak of 10 consecutive increases in borrowing costs amid rising concerns over eurozone growth. In the post-meeting press conference, ECB President Christine Lagarde said that growth was likely to remain weak over the remainder of the year as the impact of higher interest rates was broadening, though did not rule out another rate increase.

Traders, meanwhile, seem reluctant to place aggressive bearish bets around the EUR/USD pair ahead of the release of the US Core PCE Price Index – the Fed's preferred inflation gauge. The data will influence market expectations about the Fed's future rate-hike path, which, in turn, will drive the USD demand and provide a fresh impetus to the major. Nevertheless, spot prices remain on track to register modest weekly losses.

Technical levels to watch

EUR/USD

Overview
Today last price 1.0559
Today Daily Change -0.0004
Today Daily Change % -0.04
Today daily open 1.0563
 
Trends
Daily SMA20 1.0561
Daily SMA50 1.0666
Daily SMA100 1.0821
Daily SMA200 1.0815
 
Levels
Previous Daily High 1.0574
Previous Daily Low 1.0522
Previous Weekly High 1.0617
Previous Weekly Low 1.0511
Previous Monthly High 1.0882
Previous Monthly Low 1.0488
Daily Fibonacci 38.2% 1.0542
Daily Fibonacci 61.8% 1.0554
Daily Pivot Point S1 1.0532
Daily Pivot Point S2 1.0501
Daily Pivot Point S3 1.048
Daily Pivot Point R1 1.0584
Daily Pivot Point R2 1.0605
Daily Pivot Point R3 1.0636

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD flirts with 1.0500 on mixed US PMI readings

EUR/USD flirts with 1.0500 on mixed US PMI readings

 The bullish momentum remains unchanged around EUR/USD on Friday as the pair keeps its trade close to the area of multi-week highs around the 1.0500 barrier in the wake of the release of mixed results from the preliminary US Manufacturing and Services PMIs for the current month. 

EUR/USD News
GBP/USD challenges recent peaks near 1.2450

GBP/USD challenges recent peaks near 1.2450

GBP/USD pushes harder and puts the area of recent two-week highs near 1.2450 to the test on the back of the intense sell-off in the Greenback, while the British pound also derives extra strength from earluer auspicious prints from advanced UK Manufacturing and Services PMIs.

GBP/USD News
Gold keeps the bid bias near its all-time high

Gold keeps the bid bias near its all-time high

Gold prices maintain the bid tone near their record top at the end of the week, helped by the intense weakness around the US Dollar, alleviating concerns surrounding Trump's tariff narrarive, and a somewhat more flexible stance towards China.

Gold News
Dogelon Mars pumps more than 85%, whales dump 128 billion coins and realize a profit

Dogelon Mars pumps more than 85%, whales dump 128 billion coins and realize a profit

Dogelon Mars (ELON) price continues its rally on Friday after rallying more than 18% this week. On-chain data shows that ELON whale wallets realized profits during the recent surge. The technical outlook suggests a rally continuation of the dog-theme meme coin, targeting double-digit gains ahead.

Read more
ECB and US Fed not yet at finish line

ECB and US Fed not yet at finish line

Capital market participants are expecting a series of interest rate cuts this year in both the Eurozone and the US, with two interest rate cuts of 25 basis points each by the US Federal Reserve and four by the European Central Bank (ECB).

Read more
Trusted Broker Reviews for Smarter Trading

Trusted Broker Reviews for Smarter Trading

VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures