Yesterday, GDP for key European countries such as Germany and France for the July-September period exceeded expectations, leading to increased buying of the euro. This pushed EUR/USD up to the mid-1.08 range. However, stronger-than-expected U.S. ADP employment data released during New York trading pushed the rate back down to around 1.08.
Despite this, Germany’s long-term interest rates rose to their highest level in three months due to the positive GDP results, allowing the euro to rebound, closing at 1.0871. Around the 1.09 level, the 200-day moving average and the Bollinger Band midline serve as strong resistance points.
Today, Eurozone HICP inflation data will be released, and a slowdown from the previous month is expected. This could lead to a shift towards lower euro prices due to rising expectations of additional interest rate cuts by the European Central Bank (ECB).
Expected EUR/USD Range: 1.0880 – 1.0800
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