EUR/USD exchanges gains with losses around 1.1550
EUR/USD trades without direction in the mid-1.1500s amidst the broad-based side-lined mood in the global markets. The cautious stance among market participants ahead of the release of US Nonfarm Payrolls contributes to the lack of direction in EUR/USD, which continues to navigate the lower end of the weekly range in the mid-1.1500s. The greenback, in the meantime, manages to keep the trade in the upper end of the recent range albeit a tad below recent peaks near 94.50 (Thursday), all amidst a pick-up in yields in the front end of the curve and further weakness in the belly and the long end.
In the euro docket, Industrial Production in Germany contracted at a monthly 1.1% in September and EMU’s Retail Sales are due next. Further out, ECB’s Vice-President L.De Guidos reiterated once again that current elevated inflation remains transitory and it is expected to subside next year. Still around the ECB, Board member G.Maklouf said the central bank needs to be careful when it comes to inflation, adding that he would support taking action on the issue sooner rather than later while noting that high prices could linger for longer. Across the pond, all the attention will be on the release of Nonfarm Payrolls for the month of October (450K exp.) and the Unemployment Rate, which is seen easing to 4.7% during last month. So far, spot is up 0.01% at 1.1554 and faces the next up barrier at 1.1685 (55-day SMA) followed by 1.1692 (monthly high Oct.28) and finally 1.1755 (weekly high Sep.22). On the other hand, a break below 1.1528 (weekly low Nov.4) would target 1.1524 (2021 low Oct.12) en route to 1.1495 (monthly low Mar.9 2020).