The EUR/USD crosses 1.0600 while under further pressure. The following important event on the calendar is the EMU Final Inflation Report. The US docket’s focus is on the Q4 GDP. The European currency’s market movement remains muted owing to sellers, and on Thursday, the EUR/USD broke through the 1.0600 support to record fresh multi-week lows.
Dollar and statistics are the subjects of EUR/USD. On Thursday, the EUR/USD puts the 1.0600 area to the test as the slow slide continues, always against the background of the dollar’s unrelenting March upward.
The pair is moving through territory last traded during the first week of the new year, while the dollar index rose in the other direction to fresh multi-week highs in the 104.66/70 region.
Since there has been no new information regarding the pair, ongoing speculation about the Fed’s tighter-for-longer stance remains the sole factor influencing sentiment toward the pair for the time being, while expectations of a 50 basis point rate increase by the ECB and a 25 basis point increase in the Fed’s Fed Funds Target Range, both due in March, seem firm.
On this side of the Atlantic, the key domestic event will be the release of the final figures for January’s inflation in the broader Euroland, with a subsequent revision of the Q4 GDP Growth Rate, Initial Claims, and the Chicago Fed National Activity Index taking the center stage later in the NA session.
What should I look for in the EUR?
On Thursday, the pair lost further ground and dropped back to multi-week lows in the area of 1.0600.
The price movement of the euro should continue to closely track changes in the value of the dollar as well as the ECB’s likely future actions after the bank raised rates by 50 basis points in March.
Relating to the euro area, recession worries have subsided, but they continue to be a key factor supporting the single currency’s recovery and the ECB’s hawkish stance.
This week’s significant events in the eurozone include Germany’s final Q4 GDP growth rate and GfK Consumer Confidence (Thursday) (Friday).
Important problems on hold include the ECB’s ongoing cycle of rate hikes despite declining expectations for a regional recession and persistently high inflation. Effect of the Russia-Ukraine conflict on regional inflation and development prospects. Risks of persistent inflation.
Watching the EUR/USD levels
The pair is now down 0.09% at 1.0594, and a decline below that level would target 1.0481 (2023 low January 6), on the way to 1.0329 if it drops below 1.0590 (monthly low February 17). (200-day SMA). The next upward obstacle, however, is around 1.0804 (weekly high February 14), followed by 1.1032 (2023 high February 2), and then 1.1100. (round level).