Euro data this morning offered up no new surprises – Eurostat’s second estimate of eurozone inflation for October was confirmed at +1.4%, down from +1.5% in September and well below the European Central Bank (ECB) target of just below +2%.
The core-inflation rate was down to +0.9%, largely due to a sharp slowdown in prices for services.
So not an encouraging release for ECB policy makers, who expect worse news to come before what they hope will be a turn for the better in mid-2018.
Details:
Euro under pressure
The ‘single’ unit is currently trading atop of its intraday euro session low at €1.1780, and remains under pressure, capped by its 50-period moving average at €1.1802.
The techies suggest that further weakness can be expected towards the horizontal support at €1.1760 at first. A clear break below this threshold would open the way towards the support at €1.1725 and €1.1700.
Only a rebound above the strong psychological resistance at €1.1805 would turn the intraday outlook to ‘bullish.’
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Dean Popplewell
He has a deep understanding of market fundamentals and the impact of global events on capital markets.
He is respected among professional traders for his skilled analysis and career history as global head
of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean
has played an instrumental role in driving awareness of the forex market as an emerging asset class
for retail investors, as well as providing expert counsel to a number of internal teams on how to best
serve clients and industry stakeholders.
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