EUR/USD spun in a circle on Thursday, mired in the 1.0300 handle.
Final German inflation figures hit the mark, pan-EU figures expected to do the same.
US data is limited on Friday as Fiber traders gear down.
EUR/USD middled through Thursday’s market action with bids hung up on the 1.0300 price handle. There’s a limited offering from the economic data docket on Friday, and traders will be keeping an ear to the ground for any rumblings from central bank policymakers.
German Harmonized Index of Consumer Prices (HICP) inflation figures came in exactly as markets expected on Thursday, not exactly a large reach as they were non-preliminary figures and rarely change unless things are going disastrously wrong. Retail Sales figures moderated in December, easing back to 0.4% MoM in the headline figure. Markets expected a tick down to 0.6% from the previous month’s revised 0.8%. Core Retail Sales excluding automotive expenditures rose to 0.4% MoM from 0.2%, meeting median analyst forecasts. The mixed figures failed to spark significant changes in investor sentiment in either direction.
Coming up on Friday, little of note sits on the data docket, with more non-preliminary HICP inflation figures due for the broader pan-European economic zone, which is expected to confirm a slight uptick to 2.8% YoY from 2.7%. On the US side of the Atlantic, US Housing Starts, Building Permits, and Industrial Production figures for December are all expected to print relatively close to previous figures, and are unlikely to drive much market volatility on their own.
EUR/USD price forecast
Fiber has extended into a two-day flat spin, with bids getting stuck in the mud at the 1.0300 technical handle. Price action has moderated after last week’s test of the 1.0200 handle, chalking in a fresh 26-month low in the process. Bullish recovery attempts have thus far failed to materialize in a meaningful way, though EUR/USD is slowly crawling its way back from what is otherwise shaping up to be a fourth straight calendar month of declines in the FX market’s most-traded pair.
EUR/USD daily chart
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
