Eurusd shows slight increase amid economic data from US and Euro area

EURUSD Analysis

Performance after Wednesday
Period	Pct	Chg	Momentum
Wednesday	0.01%	1.4 Pips
Week to-date	0.3%	31.2 Pips
December	-0.49%	-51.9 Pips

Upcoming key events (London Time)

Fri 10:00 AM EUR GDP (seasonally adjusted) (3-mth)
Fri 01:30 PM USD Nonfarm Payroll Employment

What happened lately

In the United States, new orders for manufactured goods rose by 0.2% in October, marking an improvement from a revised decrease of 0.2% in September, according to the Census Bureau. This uptick in orders suggests a strengthening demand in the manufacturing sector, which is crucial for economic recovery and growth. Furthermore, the Job Openings and Labor Turnover Survey (JOLTS) from the Bureau of Labor Statistics indicates an increase in job openings to 7.744 million in October, up from a revised figure of 7.372 million in September. This rise in job openings points to a robust labor market, contributing positively to consumer confidence and spending.

In the Euro Area, the Producer Price Index (PPI) showed signs of improvement in October. The 12-month PPI improved to -3.2% from -3.4% in September, while the monthly PPI for October increased to 0.4%, up from -0.6% in September, according to Eurostat. This improvement suggests a stabilizing economic landscape in the Euro Area, potentially easing deflationary pressures and stimulating economic activity.

The economic data released from both sides of the Atlantic could have a mixed effect on the EURUSD exchange rate. The increase in U.S. manufacturing orders and job openings signifies a strengthening U.S. economy, which may draw expectations for sustained economic growth and could strengthen the U.S. dollar. However, the improvements in the Euro Area’s Producer Price Index indicate some positive momentum in the region’s economy, possibly supporting the Euro. Consequently, these opposing forces might contribute to the currency pair’s consolidation. Attention will likely shift to upcoming events such as the EUR GDP data and the U.S. Nonfarm Payroll Employment report, which could provide further direction for EURUSD movements.

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What can we expect from EURUSD today?

EURUSD on Wednesday rose 0.01% to 1.05111. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for EURUSD looks mixed as the pair is likely to consolidate above 1.04739 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 1.05441 or trades above daily pivot 1.0509. Break above could target R1 at 1.05462. While to the downside, we are looking at 1.04739 (S1) and daily low of 1.04718 as support levels. EURUSD need to break on either side to indicate a short-term bias. A break above 1.05441 may suggest continuation after recent positive movement.

For the week to-date, take note that EURUSD is mixed as compared to the prior week.

Key levels to watch out:

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