The EUR/USD currency pair experienced a decline of nearly half a percent on Wednesday, reflecting the lack of significant economic developments to support the EURO . Traders are now looking ahead to Friday’s upcoming Purchasing Managers Index (PMI) reports to gauge the market’s trajectory.
As the trading week progresses, the activity surrounding the EUR/USD remains subdued, hovering just above the 1.0500 level. The day offers little in terms of economic announcements for both the Eurozone and the US, resulting in a period of indecision among traders until the PMI releases later in the week.
On Friday, European Central Bank President Christine Lagarde is slated to speak at the 34th annual European Banking Conference in Frankfurt. During this appearance, she is expected to address the current state of European monetary policy and its implications for the banking sector. Market participants are keenly awaiting any comments that may hint at the ECB’s inclination towards potential rate cuts in the near future.
Simultaneously, results from the European HCOB PMI survey will be released during Lagarde’s speech. Analysts anticipate that the overall business activity metrics for November will remain unchanged, with the Composite PMI expected to hold steady at a reading of 50.0.
Friday’s key economic data also includes the S&P PMI figures, which markets predict will show a slight uptick. Manufacturing PMI is expected to rise to 48.8 from 48.5, while the Services PMI is projected to improve to 55.3, up from 55.0.
As for the EUR/USD outlook, the pair continues to languish at levels not seen in over a year, recently hitting a 54-week low. Although there was a brief attempt at recovery, momentum faltered near the 1.0600 level. The EURO ’s value has declined almost 6% from its highs in September, and the technical landscape indicates continued bearish pressure, with the EUR/USD remaining below the 50-day Exponential Moving Average (EMA) as it trends downward.
