Eurusd rises amid mixed us and eurozone economic signals

EURUSD Analysis

Performance after Thursday
Period	Pct	Chg	Momentum
Thursday	0.66%	68.3 Pips
Week to-date	1.49%	153.9 Pips
February	0.66%	68.2 Pips

Upcoming key events (London Time)

Fri 10:00 AM EUR GDP (seasonally adjusted) (3-mth)
Fri 01:30 PM USD Monthly Retail Trade (1-mth)

What happened lately

In the United States, recent economic data reveal some positive yet concerning trends. The U.S. Initial Unemployment Insurance Claims fell to 213,000, suggesting a potentially robust job market. However, there is an observed inflationary pressure, with the Producer Price Index (PPI) growing by 0.4% in January. The increase in the PPI figures, both month-on-month and year-on-year, indicates rising production costs that could eventually be passed onto consumers. The core PPI also increased to 3.6% annually, reflecting underlying inflation. Meanwhile, the U.S. CPI inflation rate also rose, with core components excluding food and energy reaching 0.4% in January. Nevertheless, this period saw a notable fiscal deficit of -$129 billion, indicating worsening government finances.

In Europe, the economic indicators are less optimistic. The Euro Area reported a decline in Industrial Production for December, falling to -1.1%, which could influence economic growth prospects. Meanwhile, Germany’s Harmonized Index of Consumer Prices remained unchanged, suggesting stable consumer prices but not necessarily indicating strong economic activity. This stability in Germany might reflect muted demand pressure, potentially impacting broader economic recovery efforts.

The EURUSD pair saw a rise of 0.66% to 1.04655 on Thursday. The mixed signals from the U.S. economic data, with inflationary pressures tempered by rising unemployment claims, suggest a complex outlook for the dollar. On the other side, the underwhelming industrial production data from the Eurozone and the unchanged inflation figures in Germany could have a stabilizing effect on the euro, limiting excessive depreciation. Upcoming high-impact events, including the Eurozone GDP and U.S. Retail Trade reports, could further influence the pair. Positive GDP figures from the Eurozone or disappointing U.S. retail data could bolster the euro, while stronger U.S. retail sales might reverse the current trend, strengthening the dollar.

Latest from X (Twitter)

Tweets by Eurostat

What can we expect from EURUSD today?

EURUSD on Thursday rose 0.66% to 1.04655. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for EURUSD looks bullish as the pair ended higher after Thursday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 1.04975 with break above could target R2 at 1.05294 or figure level area. While towards the downside, we are looking at daily low of 1.03726 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.04670 may suggest continuation after recent positive movement.

For the week to-date, take note that EURUSD is bullish as the pair continued to trade higher and is up by 1.49% over the past few days.

Key levels to watch out:

#EURUSD Trending on Twitter

[custom-twitter-feeds hashtag=”#EURUSD” num=3 showheader=false]