During the American session, EUR/USD gained momentum, benefiting from a weaker US dollar, surpassing the 1.0550 level, and erasing previous losses. The US dollar's retreat occurred despite positive US growth data, which were influenced by lower Treasury yields. EUR/USD reached a new weekly low below 1.0550 early on Thursday, after closing in negative territory for the second consecutive day on Wednesday. The US dollar (USD) outperformed its peers midweek, supported by rising US Treasury bond yields. Additionally, the negative shift observed in market sentiment following the news of Israel preparing for a ground operation allowed the US dollar to find demand as a safe haven. Markets remain cautious early on Thursday, with US stock index futures and the Euro Stoxx 50 trading in the red.
Investors anticipate that the US economy will register an annualized growth of 4.2% in the third quarter. A disappointing reading at or below 3.5% could weaken the US dollar with an initial reaction. I also note how the price, after Lagarde's statements, began to accumulate in the H4 demand zone after a significant liquidity drawdown. Currently, I'm considering a purchase at M15. I will observe the market tomorrow during the London session before the opening of the American market and ahead of the release of new macroeconomic data. Let me know what you think, leave a like, and comment. Greetings from Nicola, the CEO of Forex48 Trading Academy.
Investors anticipate that the US economy will register an annualized growth of 4.2% in the third quarter. A disappointing reading at or below 3.5% could weaken the US dollar with an initial reaction. I also note how the price, after Lagarde's statements, began to accumulate in the H4 demand zone after a significant liquidity drawdown. Currently, I'm considering a purchase at M15. I will observe the market tomorrow during the London session before the opening of the American market and ahead of the release of new macroeconomic data. Let me know what you think, leave a like, and comment. Greetings from Nicola, the CEO of Forex48 Trading Academy.
Note
EUR/USD reached a low of 1.0521, matching the lows from the previous week. Market participants perceived the European Central Bank (ECB) as adopting a more accommodative stance, while the US Dollar failed to benefit from positive economic growth data in the United States. ECB President Christine Lagarde and the governing council reiterated that inflation remains high, confirming that rates will stay elevated for as long as necessary, maintaining the previous guidance. The Euro weakened further after the meeting. Data released on Thursday showed the US economy expanding at an annual rate of 4.9% in the third quarter, surpassing expectations of 4.2%. However, the growth rate of the Core Personal Consumption Expenditure (PCE) only rose by 2.4%, below the expected 2.5% and slower than the 3.7% in the previous quarter. On the employment front, Continuing Claims rose to 1.79 million, the highest level in months, indicating that the US economy remains robust. Despite the positive GDP data, the US Dollar failed to benefit from it as US Treasury yields reversed and began to decline during the American session, leading to a rebound in EUR/USD. Fundamentally, factors continue to favor the US Dollar, and while it may not fuel further gains, it could limit the declines. The monthly release of US Core PCE data on Friday will be significant.
📈 Nicola | EdgeTradingJourney
Documenting my path to $1M in prop capital through real trading, discipline, and analysis.
Documenting my path to $1M in prop capital through real trading, discipline, and analysis.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
📈 Nicola | EdgeTradingJourney
Documenting my path to $1M in prop capital through real trading, discipline, and analysis.
Documenting my path to $1M in prop capital through real trading, discipline, and analysis.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.