EUR/USD Holds Below The Mid-1.0900s Ahead Of German CPI, US ADP Report

Image Source: Pixabay

  • EUR/USD trades on a softer note near 1.0922 amid the stronger USD.
  • The German Unemployment Rate remained steady at 5.9%, as estimated.
  • The less dovish remarks from the Federal Reserve (Fed) boost USD demand.
  • Traders will focus on the German Consumer Price Index (CPI) and US ADP Employment Change.
  • The EUR/USD pair remains on the defensive during the early Asian session on Thursday. The backdrop of the stronger Greenback and higher US Treasury bond yields exert some selling pressure on the major pair. At press time, EUR/USD is trading at 1.0922, gaining 0.01% on the day. 

    On Wednesday, the German Unemployment Rate remained steady at 5.9%, as estimated. The Unemployment Change showed that the number of unemployed people increased by 5K against the market consensus of 20K and in the previous reading of 21K. Investors await the Eurozone inflation report on Friday for fresh impetus. The Annualized Harmonized Index of Consumer Prices (HICP) for December is projected to rebound to 3.0% from 2.4%.

    Across the pond, the Federal Open Market Committee (FOMC) decided to hold its benchmark rate steady in a range between 5.25% and 5.5% at its December 2023 meeting. Members anticipate three quarter-percentage point cuts by the end of 2024.

    Nonetheless, the minutes said that the actual policy path will depend on how the economy evolves, even though participants viewed the policy rate as likely at or near its peak for this tightening cycle. Richmond Fed President Thomas Barkin stated on Wednesday that interest rate hikes cannot be ruled out despite progress in inflation control. These rather hawkish remarks boost the US Dollar (USD) across the board and weigh on the Euro (EUR). 

    Market participants will focus on December’s HCOB Composite PMI and Services PMI from France, Germany, and the Eurozone. Additionally, the German Consumer Price Index (CPI) will be due on Thursday. On the US docket, US ADP Employment Change and weekly Initial Jobless Claims will be released. EUR/USD

    OVERVIEW Today last price 1.0922 Today Daily Change 0.0001 Today Daily Change % 0.01 Today daily open 1.0921


    TRENDS Daily SMA20 1.0945 Daily SMA50 1.0849 Daily SMA100 1.0761 Daily SMA200 1.0846


    LEVELS Previous Daily High 1.0966 Previous Daily Low 1.0893 Previous Weekly High 1.114 Previous Weekly Low 1.1009 Previous Monthly High 1.114 Previous Monthly Low 1.0724 Daily Fibonacci 38.2% 1.0921 Daily Fibonacci 61.8% 1.0938 Daily Pivot Point S1 1.0888 Daily Pivot Point S2 1.0854 Daily Pivot Point S3 1.0815 Daily Pivot Point R1 1.096 Daily Pivot Point R2 1.0999 Daily Pivot Point R3 1.1033

    More By This Author:EUR/USD Dips Amid Strong U.S. Data As Market Awaits Fed Minutes Gold Price Eases Ahead Of FOMC Minutes, US Data USD/CAD Price Analysis: Maintains Its Position Near 1.3330 Ahead Of The US Key Events


    • Total Score 0%
    User rating: 0.00% ( 0
    votes )

    Leave a Reply

    Your email address will not be published. Required fields are marked *