Event to pay attention to today:
12:00 EET. EUR – Consumer Price Index – Core
EURUSD:
On Thursday, the EUR/USD currency pair moved just below 1.0600 on the chart, indicating a lack of further expansion in the recent bullish recovery, as well as a lack of decline in value. Market volumes were limited on Thursday due to the closure of US markets for the Thanksgiving holiday. Furthermore, liquidity in the US session will be constrained on Friday as the trading week draws to a close.
The release of fresh EU inflation data on Friday could provide a boost to the euro ahead of the weekend, although there has been little reason for fibre traders to rally EUR/USD recently. The key indicators for fibre will be the Harmonised Index of Consumer Prices (HICP) inflation data. Core HICP inflation is forecast to rise to 2.8% y/y in November, up from a previous reading of 2.7%. This will have an impact on the work of several European Central Bank (ECB) officials who have been communicating with the newswires this week to reassure investors of further rate cuts in December and throughout 2025.
In terms of the US dollar, the key indicator to watch next Friday will be the US Non-Farm Payrolls (NFP) report, scheduled for 6 December. Next week’s NFP will assume greater significance for traders, given the recent shift in focus away from anticipation of a rate cut by the Federal Reserve (Fed). However, a notable shift in the NFP numbers could have a significant impact on Treasury rates, prompting new considerations about the optimal number of rate cuts in 2025.
Trading recommendation: We follow the level of 1.0600, when fixing above it we consider Buy positions, when rebounding we consider Sell positions.
Origin: FreshForex
