The EUR/USD currency pair is currently trading sideways around the 1.0800 level as investors brace for significant economic data from both the Eurozone and the United States. The pair has been relatively stable for the past three days, with traders awaiting key indicators that may introduce volatility.
In the Eurozone, preliminary data for October’s Harmonized Index of Consumer Prices (HICP) is set to be released. This data will reflect inflation trends in Germany and several of its regions, as well as Spain. Analysts predict an increase in Germany’s HICP to 2.1% from 1.8% in September, while inflation in Spain is expected to remain below the 2% threshold. However, expectations suggest that unless significant surprises arise, this inflation data may not heavily influence the European Central Bank’s (ECB) interest rate decisions in the upcoming December policy meeting.
Concerns over the Eurozone’s economic outlook have grown among market participants. Recent comments from ECB officials indicate anxiety about persistently low inflation tied to sluggish growth. Additionally, uncertainty surrounding the US presidential election looms large, with markets seeming to anticipate a potential victory for Donald Trump. His proposed universal import tariffs could negatively affect the Eurozone’s robust export sector, with forecasts predicting a 1% decrease in the region’s GDP should these tariffs be imposed.
On the US side, the focus will also shift toward economic data following weaker than expected job openings statistics that reinforced fears about labor market strength. As the US Dollar Index (DXY) retreats to around 104.20, markets will closely monitor upcoming ADP Employment Change figures and US GDP growth estimates for further insight into the economic landscape.
As for technical analysis, EUR/USD consolidates near 1.0800, maintaining levels above a supportive trendline at approximately 1.0750. Nevertheless, the broader sentiment remains bearish as the pair struggles to break above the 200-day Exponential Moving Average located around 1.0900. The current trading behavior suggests potential for further declines, particularly if the pair dips below 1.0750. Key resistance levels remain at the psychological level of 1.1000 and the 200-day EMA.
