The EUR/USD currency pair continues its downward trend, dropping to 1.0546 on Thursday, which marks its lowest value since November 2023. This decline has now reached five consecutive days, primarily fueled by a robust US dollar. Investors are closely monitoring upcoming economic data, including the Eurozone’s Gross Domestic Product (GDP) report, which is expected to reveal a quarterly growth rate of 0.4% for the third quarter.
The anticipated GDP figures point to modest growth, with year-over-year expectations set at 0.9%. This suggests a tepid economic environment within the Eurozone, reflecting ongoing challenges. Traders will be particularly alert to how these numbers align with market sentiment, particularly in light of the strengthening USD, often referred to in the context of recent market dynamics linked to changing investor preferences.
All eyes are on the European Central Bank (ECB) President, who is set to speak at an important awards ceremony in Paris. Her comments could provide insights into future monetary policy, especially in relation to the ECB’s stance on economic challenges. Concurrently, the chair of the US Federal Reserve is scheduled to participate in a panel that will discuss global economic perspectives, underlining the interconnected nature of international markets.
In the US, the Dollar Index is stable around the 106.60 level, buoyed by increased US Treasury yields, which are currently at 4.31% for the 2-year and 4.47% for the 10-year bonds. These rates have helped maintain a strong dollar position amid fluctuating economic indicators.
Recent reports show that the US Consumer Price Index (CPI) increased by 2.6% year-over-year in October, aligning with market forecasts. The monthly figures indicate stability, further enhancing the overall economic narrative as the core CPI remains steady, highlighting the balance in inflationary pressures impacting consumer goods and services.
