EUR/USD faces harsh rejection from 1.12 amid Greenback bounce
EUR/USD fell four-tenths of a percent after flubbing the 1.12 handle on Wednesday.
Markets pivoted into Greenback bids in the midweek market session.
US economic data and Fedspeak to dominate market cycle for the rest of the week.
EUR/USD pulled back on Wednesday, tumbling back through the 1.1200 handle and falling into familiar near-term congestion just north of 1.1100. Fiber shed nearly half of a percent after briefly setting a new 14-month high this week.
Thursday brings an entire raft of speeches from central banks, with an appearance from European Central Bank (ECB) President Christine Lagarde, as well as talking points from ECB Executive Board Member Isabel Schnabel. Friday will follow with a full slates of consumer and business sentiment surveys for September from the pan-EU economic area.
US consumer confidence indicators fell this week as the average US consumer doesn’t share in the stock market’s exuberance over Fed rate cuts, with key confidence readings falling to their lowest levels in three years and consumer inflation expectations for the next 12 months ticking higher. This Friday will see a fresh update to US Personal Consumption Expenditure (PCE) inflation figures.
New home sales also fell in August, declining 4.7% to 716K from the previous month’s revised 751K. Meanwhile, investors will see another print of US Gross Domestic Product (GDP) growth for the second quarter, expected to hold steady at 3.0% on an annualized basis. Thursday will also bring a slew of speeches and public appearances from several Fed officials, including Fed Chair Jerome Powell.
Economic Indicator
New Home Sales Change (MoM)
The number of New Home sales released by the US Census Bureau is an important measure of housing market conditions. House buyers spend money on furnishing and financing their homes so as a result the demand for goods, services and the employees is stimulated. Generally, a high reading is seen as bullish for the USD, whereas a low reading is seen as bearish.
Last release: Wed Sep 25, 2024 14:00
Frequency: Monthly
Actual: -4.7%
Consensus: -
Previous: 10.6%
Source: US Census Bureau
EUR/USD price forecast
Despite notching in a quick, fresh 14-month high on Wednesday, Fiber tumbled back through the 1.1200 handle in short order, plunging back into near-term consolidation after markets pivoted back into bidding the Greenback higher. EUR/USD is still deep in bull country, trading well north of the 50-day Exponential Moving Average (EMA) near 1.1030.
EUR/USD daily chart
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