EURUSD rebounded after testing 1.0500 on Thursday, its lowest level in almost a year.
EURUSD recovers on Friday following a brief test of the 1.0500 barrier the previous day, wiping off Thursday’s losses. The pair has fallen roughly 1.5% this week as markets have priced in additional Trump trade impacts. That move is now facing some profit-taking following the Euro’s five-day losing streak against the US dollar All of the parts of the game are now in place, and EURUSD may begin to trade sideways in a range until President-elect Donald Trump takes office in January.
Euro recovered against the US dollar on Friday after profit-taking ended a five-day losing streak.
The EURUSD recovery on Friday appears to be driven by profit-taking following this week’s sharp fall. Economic statistics from France released earlier in the day revealed that inflation, as measured by the Harmonized Consumer Price Index (HCPI), was slightly higher than the preliminary reading for October. However, this may not influence the European Central Bank’s (ECB) dovish position, which expected to decrease its policy rate at its next policy meeting in December.
Markets concerned about the Fed, putting the December rate decrease in doubt.
On Thursday, Federal Reserve (Fed) Chairman Jerome Powell join the group of members within the Fed who consider another rate cut In December. However, it is not given. Powell emphasized that the US economy and employment markets still performing extremely well. Meanwhile, some analysts and economists have warned of exponential inflation in the United States if President-elect Donald Trump implements all of his fiscal stimulus measures for both US businesses and individuals, as well as imposes tariffs on China and Europe.
Daily Market movers: EURUSD rises ahead of US retail sales.
On Friday, Japanese indices closed flat to slightly positive, while Chinese shares fell for the week.
France’s official reading for October inflation data came in somewhat higher than expected. The HCPI increased by 1.6% year on year (YoY), compared to the 1.5% previously recorded and projected. The monthly HCPI came in at 0.3%, as anticipated China’s retail sales increased by 4.8% year on year in October, exceeding the lower anticipation of 3.8%.
On Friday, all eyes will be on US Retail Sales data for October, with the headline number predicted to be 0.3%, up from 0.4% in September. As always, markets will react more to changes than to the actual number.
