The EUR/USD currency pair briefly touched new yearly lows on Thursday, falling below the 1.0500 mark for the first time in 54 weeks. A lack of significant economic data from the Eurozone left the Euro struggling, while the US Dollar continued to attract safe-haven bids. European GDP growth for Q3 met expectations, posting a quarterly increase of 0.4% and an annual rise of 0.9%, failing to spark any meaningful Euro rally.
Meanwhile, October’s Producer Price Index (PPI) data showed mixed results. Headline PPI rose by 0.2% month-on-month, as expected, while core PPI for the year ended in October increased slightly more than anticipated, reaching 3.1%, up from 2.9% in the previous period.
The economic focus now shifts to US Retail Sales for October, with expectations for a slight slowdown to 0.3% growth from September’s 0.4%.
The technical outlook for EUR/USD remains bearish, with the pair trading well below both the 50-day and 200-day Exponential Moving Averages (EMAs), which currently sit at 1.0867 and 1.0884. A recent “death cross” between these EMAs signals continued downward pressure. Support may emerge near 1.0520, though any recovery is likely to face resistance around 1.0700. A break below 1.0500 could trigger further declines, with 1.0400 seen as the next potential support level.
Related Topics:
- Current EUR Exchange Rate: 80 Euros in Pounds
- Current EUR Exchange Rate: 15 Euro in Australian Dollars
- Current EUR Exchange Rate: 8 Euros in Pounds
