EUR/USD experienced a significant decline, falling sharply below 1.1700 on Thursday. This movement has pushed the currency pair beneath two critical technical support levels, indicating potential for additional downward movement. The robust employment figures from the United States led to a decline in the Euro’s value. Currently, the pair is trading at 1.1667, reflecting a decline of 0.60%.
The EUR/USD pair has declined by 0.60%, breaching significant support levels and continuing its downward trend beneath the 1.1700 mark. US Initial Jobless Claims, GDP, and durable goods orders underscore a resilient economy, exerting additional pressure on the Euro. Germany’s GfK sentiment shows improvement yet continues to be negative, providing minimal support to the shared currency.
> Strong jobless claims, positive GDP, and durable goods orders provide a boost U.S. Dollar Euro experiences a decline : The US economic docket was comprehensive, featuring not only the jobs data but also the final revision figures for Gross Domestic Product, Durable Goods Orders, and Existing Home Sales. Initial Jobless Claims for the week ending September 20 indicate that the labor market remains robust, with the economy exceeding growth estimates of 3.3% YoY. Durable Goods Orders demonstrated remarkable performance, with aircraft orders surging by 21.6%. Meanwhile, Existing Home Sales experienced a decline yet still exceeded consensus expectations. Federal Reserve officials made headlines, spearheaded by Regional Fed Presidents Schmid, Goolsbee, and Governor Stephen Miran. The Eurozone docket was relatively sparse, with Germany’s GfK Consumer Sentiment indicating an improvement, although it still remains in negative territory. The rise in income expectations was the primary factor contributing to the enhancement of overall sentiment.
Latest FX Rate Trends : Euro faces pressure from widespread strength of the US Dollar
- The US Dollar Index, which measures the dollar’s strength relative to a selection of six currencies, has increased by 0.63%, reaching a value of 98.45.
- US Initial Jobless Claims decreased to 218K for the week ending September 20, falling short of the anticipated 235K and down from the previous week’s figure of 231K. Continuing Claims decreased marginally to 1.926 million from 1.928 million.
- The Bureau of Economic Analysis has indicated that the second-quarter GDP experienced a growth of 3.8% YoY, surpassing both projections and the previous estimate of 3.3%, representing the most robust growth rate in two years.
- In August, Durable Goods Orders experienced a significant increase of 2.9%, marking a strong recovery from July’s 2.7% decrease and surpassing the anticipated 0.5% decline.
- Following the data release, the likelihood of the Federal Reserve implementing a 25 basis point rate cut at the October 19 meeting diminished from 94% the previous day to 85%, according to information from Prime Market Terminal.
- Fed Governor Stephen Miran expressed a dovish stance, emphasizing that policy should remain 200 basis points below and that the Fed ought to implement reductions in increments of 50 basis points.
- Chicago’s Federal Reserve Austan Goolsbee is not in favor of front-loading rate cuts, given the persistently high inflation levels. While he maintains a positive outlook that tariffs will not broadly impact inflation, he indicated that reductions will be contingent upon inflationary trends.
- Kansas City Fed Jeffrey Schmid stated that the Fed is nearing the fulfillment of its dual mandate, and he deemed last week’s rate cut as suitable to mitigate risks to the employment sector. He noted that although the policy is “slightly restrictive,” it is the appropriate position to maintain.
- Tensions in Europe concerning Russia’s drone operations over specific nations may exert pressure on the shared currency.