The Euro keeps the bid bias unchanged against the US Dollar
The Euro (EUR) trades in a robust tone against the US Dollar (USD), motivating EUR/USD to cling to its daily gains in the upper end of the weekly range around 1.0870-1.0880 on Thursday. The Greenback navigates with modest losses around 104.30 when tracked by the USD Index (DXY) amidst the resumption of the downward bias in US yields across the board and firmer market chatter around the start of interest rate cuts by the Federal Reserve (Fed) at some point in the summer of 2024.
Speculation about potential Fed rate cuts has been magnified following weaker-than-estimated inflation measures (CPI and PPI) published earlier in the week. On the domestic calendar, there was no news from ECB President Lagarde at her speech in Frankfurt earlier in the day. Across the ocean, weekly Initial Jobless Claims increased by 231K in the week to November 11, while the Philly Fed Manufacturing Index improved to -5.9 in November. Additionally, Industrial Production contracted at a monthly 0.6% in October and 0.7% over the last twelve months. Later in the session, the NAHB Housing Market Index and Net Long-Term TIC Flows are also due.
EUR/USD advances modestly on Thursday, returning at the same time to the upper end of the recent range. The November peak of 1.0887 (November 14) emerges as the next target of note for EUR/USD prior to the weekly high of 1.0945 (August 30) and the psychological level of 1.1000. The breakout of this area might pave the way for a visit to the August top of 1.1064 (August 10) and another weekly peak of 1.1149 (July 27), all preceding the 2023 high of 1.1275 (July 18). Occasional bouts of weakness may cause the pair to test temporary support at the 55-day Simple Moving Average (SMA) at 1.0639, before the weekly low of 1.0495 (October 13) and the 2023 low of 1.0448. (October 15). Looking at the bigger picture, the pair's outlook should continue positive as long as it remains above the 200-day SMA at 1.0803.
EUR/USD advances modestly on Thursday, returning at the same time to the upper end of the recent range. The November peak of 1.0887 (November 14) emerges as the next target of note for EUR/USD prior to the weekly high of 1.0945 (August 30) and the psychological level of 1.1000. The breakout of this area might pave the way for a visit to the August top of 1.1064 (August 10) and another weekly peak of 1.1149 (July 27), all preceding the 2023 high of 1.1275 (July 18). Occasional bouts of weakness may cause the pair to test temporary support at the 55-day Simple Moving Average (SMA) at 1.0639, before the weekly low of 1.0495 (October 13) and the 2023 low of 1.0448. (October 15). Looking at the bigger picture, the pair's outlook should continue positive as long as it remains above the 200-day SMA at 1.0803.