- EUR/USD maintains a position slightly above 1.0700, with minimal change despite a strong recovery in the US Dollar.
- US Treasury yields increase after significant durable goods data and a major five-year note sale, impacting market sentiment.
- Upcoming US GDP and Core PCE data, along with German consumer confidence figures, are next on the economic calendar.
The Euro is steady against the US Dollar, virtually unchanged after solid data from the United States (US) boosted the Greenback, which recovered from Tuesday's losses. However, the EUR/USD stands below the 1.0700 threshold posting minimal gains of 0.01%.
EUR/USD is flatlined ahead of crucial US GDP and inflation data
The market mood shifted sour as the US Treasury yields edged up after a record $70 billion sale of five-year notes in the US fixed-income market. In the meantime, the US Department of Commerce showed that US Durable Goods Orders increased in March, expanding by 2.6% MoM, up from a 0.7% rise previously and surpassing 2.5% estimates. Core goods, which excluded transportation, increased by 0.2% MoM, an improvement over February's 0.1% increase, but fell short of the 0.3% projected.
Today’s data contrasts with Tuesday’s S&P Global PMI figures in the US. Although business activity has eased somewhat, Goods Orders figures crushed February’s figures, signaling the economy remains strong.
On Thursday, the US Bureau of Economic Analysis (BEA) will reveal the Gross Domestic Product (GDP) for the first quarter of 2024, estimated at 2.5%, down from 3.4% in Q4 2023. At the same time, Initial Jobless Claims are expected to increase from 212K to 214K.
Besides that, EUR/USD traders would be eyeing the release of the Core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred inflation gauge, which is estimated to remain steady at 0.3%. The annual Core PCE rate is expected to ease to 2.6%, down from February's rate of 2.8%, indicating a potential softening of inflation pressure.
Across the pond, traders would be eyeing the release of Germany’s GfK Consumer Confidence for May, projected to improve from -27.4 to -25.9.
EUR/USD Price Analysis: Technical outlook
Even though the EUR/USD seems to have bottomed at around 1.0600, buyers' failure to achieve a daily close above 1.0700 could pave the way for a re-test of the year-to-date (YTD) low at 1.0601. In that event, a breach of the latter, will expose a key support level at 1.0448, the October 3, 2023, swing low. On the upside, if buyers keep the spot price above 1.0700, look for a test of the psychological 1.0750 before aiming toward the confluence of the 50 and 200-DMA.
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 below 1.1100, looks to post weekly losses](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/european-euro-coin-on-top-of-american-dollar-bill-11292130_XtraSmall.jpg)
EUR/USD stays below 1.1100, looks to post weekly losses
EUR/USD continues to trade in a narrow range below 1.1100 and remains on track to end the week in negative territory. Earlier in the day, monthly PCE inflation data from the US came in line with the market expectation, failing to trigger a reaction.
![GBP/USD struggles to find a foothold, trades near 1.3150](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-157771037_XtraSmall.jpg)
GBP/USD struggles to find a foothold, trades near 1.3150
GBP/USD stays on the back foot and trades in negative territory at around 1.3150 on Friday. The US Dollar holds its ground following the July PCE inflation data and doesn't allow the pair to stage a rebound heading into the weekend.
![Gold retreats toward $2,500 ahead of the weekend](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/gold-bars-50657756_XtraSmall.jpg)
Gold retreats toward $2,500 ahead of the weekend
Gold stays under modest bearish pressure and declines toward $2,500 in the American session on Friday. The 10-year US Treasury bond yield edges higher toward 3.9% after US PCE inflation data, causing XAU/USD to stretch lower.
![Week ahead – Investors brace for NFP amid Fed rate cut speculation](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Employment/NFP/america-back-to-work-gm178972493-25143312_XtraSmall.jpg)
Week ahead – Investors brace for NFP amid Fed rate cut speculation
Here comes another NFP week, with investors eagerly awaiting the results as they try to discern the size and pace of the Fed’s forthcoming rate cuts. The weaker than expected July numbers triggered market turbulence, instilling fears about a potential recession in the US.
![Easing Eurozone inflation to back an ECB rate cut in September](https://editorial.fxstreet.com/images/Macroeconomics/Countries/Europe/Eurozone_countries/Eurozone/eu-flags-flying-at-the-european-commission-building-brussels-belgium-24759579_XtraSmall.jpg)
Easing Eurozone inflation to back an ECB rate cut in September Premium
Eurostat will publish the preliminary estimate of the August Eurozone Harmonized Index of Consumer Prices on Friday, and the anticipated outcome will back up the case for another European Central Bank interest rate cut when policymakers meet in September.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.