EURUSD stabilized at around 1.0550 early Friday after posting large losses on Thursday. The technical outlook points to a loss of bullish momentum but buyers could show interest if the pair manages to flip 1.0570 into support.
The renewed US Dollar (USD) strength forced EUR/USD to turn south in the American session on Thursday following the latest inflation figures.
The Consumer Price Index (CPI) in the US rose 3.7% on a yearly basis in September, the US Bureau of Labor Statistics reported. The annual Core CPI inflation, which excludes volatile food and energy prices, edged lower to 4.1% from 4.3% as forecast. Assessing the underlying details of the report, "the Fed's 'supercore' (core services excluding home rent component) jumped 0.6% month-over-month, bringing the most recent three month annualized growth rate to 4.8% from 2.2% in August," said Nathan Janzen, Assistant Chief Economist at Royal Bank of Canada.
Early Friday, US stock index futures trade modestly higher on the day. In the absence of high-impact macroeconomic data releases, the risk perception could impact the USD's valuation and drive EUR/USD's action ahead of the weekend.
A bullish opening in Wall Street could make it difficult for the USD to find demand. On the other hand, EUR/USD could turn south in case investors continue to price in a stronger probability of one more 25 basis points Federal Reserve rate hike before the end of the year.
The renewed US Dollar (USD) strength forced EUR/USD to turn south in the American session on Thursday following the latest inflation figures.
The Consumer Price Index (CPI) in the US rose 3.7% on a yearly basis in September, the US Bureau of Labor Statistics reported. The annual Core CPI inflation, which excludes volatile food and energy prices, edged lower to 4.1% from 4.3% as forecast. Assessing the underlying details of the report, "the Fed's 'supercore' (core services excluding home rent component) jumped 0.6% month-over-month, bringing the most recent three month annualized growth rate to 4.8% from 2.2% in August," said Nathan Janzen, Assistant Chief Economist at Royal Bank of Canada.
Early Friday, US stock index futures trade modestly higher on the day. In the absence of high-impact macroeconomic data releases, the risk perception could impact the USD's valuation and drive EUR/USD's action ahead of the weekend.
A bullish opening in Wall Street could make it difficult for the USD to find demand. On the other hand, EUR/USD could turn south in case investors continue to price in a stronger probability of one more 25 basis points Federal Reserve rate hike before the end of the year.
