- Final Euro inflation figures to be overshadowed by US CPI inflation print.
- Fed Chair Jerome Powell due to speak on Tuesday.
- US consumer inflation expectations rose again, complicating the path to rate cuts.
EUR/USD found slim upside on Monday, climbing from early bids near 1.0770 but bullish momentum remains limited with the pair struggling to break above the 1.0800 level.
German final Harmonized Index of Consumer Prices (HICP) inflation figures are due during the European market session, but the mid-tier final inflation print is unlikely to drive market volatility unless inflation numbers see late adjustments compared to the preliminary figures. European Gross Domestic Product (GDP) growth for the first quarter are slated for Wednesday, and markets are expected QoQ GDP growth to hold steady at 0.3%.
US consumer inflation expectations rose in April according to a survey from the Federal Reserve (Fed) Bank of New York. According to the NY Fed’s consumer sentiment survey, US consumers broadly expect inflation over the next year to accelerate to 3.3%. Consumer one-year inflation expectations rose from 3.0% in March.
US Producer Price Index (PPI) inflation numbers are due during Tuesday’s US market session, where investors are expecting producer-level inflation in April to tick higher to 0.3% MoM compared to the previous month’s 0.2%.
EUR/USD technical outlook
EUR/USD continues to trade into the high end after a bounce-and-run from the 200-hour Exponential Moving Average (EMA) last week near 1.0730. Bullish potential remains capped by a near-term supply zone above the 1.0800 handle.
Daily candlesticks show the EUR/USD trading into firm technical resistance at the 200-day EMA at 1.0789, a failed launch from bidders could see the pair falling back into the last swing low near 1.0600. A topside break from buyers will send the pair into immediate resistance from the last swing high just below 1.0900.
EUR/USD hourly chart
EUR/USD daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD keeps range above 0.6600 after RBA Hunter
AUD/USD is licking its wounds above 0.6600 in the Asian session on Thursday. The US Dollar clings to previous gains amid extended risk-aversion, capping the pair's recovery attempts while strong Australian Q1 Private Capex data cushions the downside.
USD/JPY: Japanese Yen appreciates as traders bet on another rate hike by BoJ
The Japanese Yen snapped recent losses on Thursday, spurred by comments from Bank of Japan board member Seiji Adachi on Wednesday. Adachi emphasized the gradual reduction of bond purchases to ensure that long-term yields accurately reflect market signals.
Gold price remains on the defensive ahead of US GDP data
Gold price trades in negative territory on Thursday, supported by the firmer US Dollar and higher US yields. The diminishing expectation of the Federal Reserve's rate cut in September exerts some selling pressure on the precious metal as it will increase gold's opportunity costs.
Ethereum sideways move persists, analyst says ETH ETF will only see 20% of Bitcoin flows
Ethereum sustained its sideways movement on Wednesday as Bloomberg analyst Eric Balchunas compared spot ETH ETFs to Silver ETFs, predicting that they will only see 20% of the flows recorded across Bitcoin ETFs.
The focus is on core PCE showing a cooling
An autopsy on Tuesday’s price action is useful. We got a hot mess in the news and on the charts. Minneapolis Fed Kashkari said the Fed has not ruled out additional rate hikes. Then we got a mixed but relatively upbeat consumer confidence survey that showed a willingness to keep spending and the expectation that rates will go up.