The afternoon session in Europe sees a blockbuster round of data coming out with two key releases and a host of smaller, but important, data. All of this is happening amidst market turmoil over rising virus cases and lockdowns.
EU and US Economic Releases
The key releases today are the European Central Bank interest rate decision, which will be followed by the press conference. Rates are expected to stay at 0% but there is potential for further stimulus, especially with the backdrop of the virus resurgence and lockdowns across Europe. The other key release is U.S Q3 GDP, which is an advance look at the third quarter. The market is expecting a 31% print, which would be the highest since WWII. Any adjustment to that could really rock the stock market and the U.S. dollar.
On top of these releases, we also get the weekly U.S jobless claims figures, where traders will be looking for an improvement in the U.S. jobs picture. The expectation is for 775k new claims versus 787k last week, which was worse than expected.
Another preliminary Q3 figure comes in the form of U.S. Core PCE inflation. The market is looking for a 4% print after -0.8% last time out and a heating up of consumer prices could also add fuel to the U.S. dollar.
The data comes as the euro is under pressure against the greenback and stocks are plummeting due to surging virus cases and lockdowns in Europe’s largest economies. The situation is pouring cold water on the market’s global recovery story and we could see big movement in the dollar and euro pairs, alongside stocks, for the rest of the day.
EURUSD Technical Outlook
EURUSD has been tumbling for the last four days and is eyeing support at 1.1700. A break below there targets the 1.16100 level. The next level below is 1.1500. Cautious traders could short a bearish close with a stop above the daily high. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
Don’t miss a beat! Follow us on Telegram and Twitter.
EURUSD Daily Chart
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Kevin on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.