Topics

Posted 9/25/2023, 12:47:06 PM

Euro Under Pressure Ahead of Key Inflation Data; EUR/USD Nears Lows Below 1.0600

Market participants cautious ahead of key inflation data, Euro gets lift from German IFO survey
EUR/USD nears September lows below 1.0600 as bears look to take control
Focus turns to inflation numbers from Germany, Eurozone, and US later this week
EUR/USD in firm bearish trend based on technical analysis of daily and 4-hour charts
Risk skewed to downside for EUR/USD; support at 1.0610, 1.0580, 1.0540; resistance at 1.0675, 1.0720, 1.0765

fxstreet.com

Relevant topic timeline:

7/31/2023

EUR: Short The Euro On Diverging Economic Fundamentals

Main financial assets discussed: Euro (EUR), U.S. dollar (USD), Invesco CurrencyShares Euro Trust (FXE) ETF Top 3 key points: 1. The relative interest rate differential between the European Central Bank (ECB) and the U.S. Federal Reserve (Fed) has been a key driver of the Euro's strength against the U.S. dollar in the past. 2. The changing tone of the ECB, with President Christine Lagarde being more dovish, and the diverging economic performance between the U.S. and Europe suggest that the Euro may weaken against the U.S. dollar. 3. Speculative positioning in the Euro is at its longest in years, and technical indicators suggest a potential breakdown in the Euro's value. Recommended actions: **Sell** the Euro or the FXE ETF. Short the Euro directly via FX markets or buy a put spread on the FXE ETF.

8/23/2023

Euro falls on gloomy PMI data, dollar hits 2-month high

The euro fell to a two-month low against the dollar and a 12-month low against the pound after German and eurozone business activity slumped more than expected in August, leading to concerns about the state of the European economy and potential pauses in tightening measures by the European Central Bank, while the dollar rose to a two-month peak amid positive U.S. economic data.

8/30/2023

Dollar falls to two-week low as economic data softens

The US dollar dropped to a two-week low against the euro and other currencies after data revealed lower than expected private payroll growth in August, leading to speculation that the Federal Reserve will halt interest rate increases.

8/31/2023

Euro slips as ECB policymaker takes cautious tone

The euro weakened following comments from ECB rate-setter Isabel Schnabel, raising uncertainty about whether interest rates will be raised in September.

9/12/2023

Euro Slides Below $1.10 as Fed Rate Hikes Strengthen Dollar Against Struggling European Economy

The euro has been continuously decreasing in value against the dollar for the eighth consecutive week, reflecting the economic challenges faced by Europe, including high inflation and the specter of recession, while the United States has better control over inflation and a stronger labor market, leading to a widening gap between the euro and the dollar.

9/26/2023

European Stocks Slide as Traders Brace for More US Rate Hikes

European stock markets open lower due to concerns over potential US interest rate hike to combat inflation.

9/28/2023

German Inflation Set to Ease in September, Signalling Potential End of High Prices

German inflation is likely to ease significantly in September based on data from five key German states, signaling the potential end of high inflation that has weighed on Europe's largest economy.

9/29/2023

Euro Zone Inflation Falls to Lowest Level Since 2021, But Remains High in Some Countries

Euro zone annual inflation dropped to its lowest level since October 2021, falling to 4.3% in September, while core inflation decreased to 4.5%, prompting uncertainty over potential rate cuts by the European Central Bank.

9/29/2023

Inflation in Europe Drops Sharply in September But Further Declines Threatened by Rising Oil Prices

The sharp decline in inflation in Europe in September raises hopes for relief from high consumer costs, but concerns remain regarding higher oil prices and the ECB's ability to achieve its 2% inflation target.

10/17/2023

Euro Rallies on Strong Economic Data, Rising Above 1.0600 Against US Dollar

The EUR/USD is climbing after US Retail Sales beat expectations, causing investor sentiment to improve and the USD to weaken.

Topics

Posted 9/25/2023, 12:47:06 PM

Euro Under Pressure Ahead of Key Inflation Data; EUR/USD Nears Lows Below 1.0600

Market participants cautious ahead of key inflation data, Euro gets lift from German IFO survey
EUR/USD nears September lows below 1.0600 as bears look to take control
Focus turns to inflation numbers from Germany, Eurozone, and US later this week
EUR/USD in firm bearish trend based on technical analysis of daily and 4-hour charts
Risk skewed to downside for EUR/USD; support at 1.0610, 1.0580, 1.0540; resistance at 1.0675, 1.0720, 1.0765

fxstreet.com

Relevant topic timeline:

7/31/2023

EUR: Short The Euro On Diverging Economic Fundamentals

8/23/2023

Euro falls on gloomy PMI data, dollar hits 2-month high

8/30/2023

Dollar falls to two-week low as economic data softens

8/31/2023

Euro slips as ECB policymaker takes cautious tone

The euro weakened following comments from ECB rate-setter Isabel Schnabel, raising uncertainty about whether interest rates will be raised in September.

9/12/2023

Euro Slides Below $1.10 as Fed Rate Hikes Strengthen Dollar Against Struggling European Economy

9/26/2023

European Stocks Slide as Traders Brace for More US Rate Hikes

European stock markets open lower due to concerns over potential US interest rate hike to combat inflation.

9/28/2023

German Inflation Set to Ease in September, Signalling Potential End of High Prices

German inflation is likely to ease significantly in September based on data from five key German states, signaling the potential end of high inflation that has weighed on Europe's largest economy.

9/29/2023

Euro Zone Inflation Falls to Lowest Level Since 2021, But Remains High in Some Countries

9/29/2023

Inflation in Europe Drops Sharply in September But Further Declines Threatened by Rising Oil Prices

10/17/2023

Euro Rallies on Strong Economic Data, Rising Above 1.0600 Against US Dollar

The EUR/USD is climbing after US Retail Sales beat expectations, causing investor sentiment to improve and the USD to weaken.