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Trends & Analysis
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Trends & Analysis
News

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News

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Asset Watch

EUR/USD price braces for the Fed Chairman speech

 

Thursday, November 9, 2023

EUR/USD price news, and analysis

• Central banks officials’ speeches impact the EUR/USD price
• Bulls pull back could send the EUR/USD price to test a key support level

 

The Euro prices held steady this week on the back of statements by some European Central Bank officials that ruled out thinking about reducing European interest rates. However, the price fluctuation of the US dollar remains the most important factor that may currently affect the EUR/USD price.

The US Dollar was impacted by lower chances of hiking rates in the upcoming FOMC meeting in December due to the decline in oil prices, which reflects negatively on the inflation levels in addition to the decline in the strength of the US labor market, which was shown in the October jobs report, and finally, hints from some members of the Federal Reserve that high long-term bond yields are tightening economic conditions, especially for the real estate mortgage sector, which has reached levels of 8% providing the same effect as raising interest rates.

The markets will focus on the speeches of Federal Reserve members, Mr. Bostick, but the greatest focus will be on the speech of Federal Reserve Chairman, Mr. Powell, at the International Monetary Fund. As for the expected data, the market waits for the US jobless claims, and any higher than expected data may negatively affect the US dollar price because it highlights more weakness in the labor market as explained above.

 

EUR/USD Price Daily Chart

 

Chart source ADSS Platform

On October 6, the EUR/USD rallied to a multi-week high at 1.0756 then the price retreated on taking profits operations. This week, the price stabilized within the current trading zone located between 1.0789- 1.0629 eyeing a test of the low end of the zone residing at the 50-day simple moving average. A daily close below that level could encourage bears to press towards 1.0482. Nonetheless, the support level marked at 1.0574 should be considered.

On the other hand, any U turn in the price direction with a daily close above the high end of the zone may embolden bulls to rally the price towards 1.0873. That said, the resistance level residing at 1.0831 should be watched closely.


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