EURUSD remains sideways at 1.0800 ahead of significant economic data releases from the Eurozone and the United States.
In Wednesday’s European session, the EURUSD trades near Tuesday’s high, slightly above 1.0800. The major currency pair remained sideways for the third day in a row as investors anticipate crucial macroeconomic data from the Eurozone and the United States (US), which expected to add volatility to the pair.
French economy expanded by 0.4%, as projected.
In Europe, the October preliminary Harmonized Index of Consumer Prices (HICP) data from Germany and six other states, including Spain, will indicate whether inflationary pressures remain under the European Central Bank’s (ECB) target of 2%.
Economists predict the German HICP to have risen to 2.1% from 1.8% in September, while inflation in Spain expected to have stayed below 2%.
Unless there is a substantial upside surprise, the inflation data is expected to have less of an impact on the ECB’s interest rate action at its upcoming policy meeting in December, as officials view price pressures weakening faster than expected.
Recent comments from ECB policymakers have indicated that they are concerned about inflation remaining chronically low due to slowing economic growth. Market players concerned about the outlook for The Eurozone economy.
Trump’s victory in the US presidential election may have a negative influence on Eurozone economy.
Meanwhile, uncertainty around the US presidential election lingers. While national surveys show a close race between former US President Donald Trump and current Vice President Kamala Harris, traders appear to be pricing in a Trump victory, which would have significant implications for the Eurozone.
Trump vowed a 10% duty on all imports, with the exception of those from China, which will face considerably higher levies. The possibility of tariffs might have a substantial impact on the Eurozone’s strong export sector. Goldman Sachs estimates that a universal 10% tariff would reduce the Eurozone’s Gross Domestic Product (GDP) by 1%.
During Wednesday’s session, investors will also pay attention to the Eurozone and its key regions’ flash Q3 GDP statistics. Market Participants will pay special attention to German growth data, as the region’s largest economy is expected to shrink for the second quarter in a row.
Meanwhile, preliminary French Q3 GDP increased at an estimated rate of 0.4%, faster than 0.2% in the second quarter of the year.
Daily Market movers: EURUSD remains on the sidelines as US Dollar advance pauses.
EURUSD continues sideways, as the US Dollar (USD) advance appears to have halted. The USD is under pressure amid lackluster The September JOLTS Job Openings report in the United States (US) has rekindled concerns about labor market hardship. The US Dollar Index (DXY), which measures the greenback’s value against six major currencies, falls to around 104.20.
Tuesday’s Job Openings report revealed new openings standing at 7.443 million, lower below predictions of 7.99 million and the previous release of 7.861 million. Weak job openings indicated to sluggish labor demand, keeping Federal Reserve (Fed) dovish forecasts for the rest of the year alive. According to a Reuters poll conducted from October 23 to 29, the Fed will decrease interest rates by 25 basis points (bps) during policy meetings in November and December.
Investors will look for fresh interest rate clues from the ADP Employment Change and the flash US Q3 GDP data.
EURUSD investors will look for fresh interest rate clues from the ADP Employment Change and the flash US Q3 GDP data, both of which will be release during the North American session. Economists predict the private sector to add 115K new jobs in October, down from 143K in September. Meanwhile, the US economy is predicted to have risen at a steady rate of 3.0 percent on An annually basis.
Investors pay close attention later this week to the October Nonfarm Payrolls and ISM Manufacturing PMI data, as well as the September Personal Consumption Expenditure Price Index (PCE).
