Created
: 2024.11.14
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
EUR/USD finds a new year-long low as Euro continues to corrode
World FX news
Breaking news
EUR/USD finds a new year-long low as Euro continues to corrode
New
2024.11.14 01:26
2024.11.14 01:26
2024.11.14 01:26
- EUR/USD slipped below 1.0600 on Wednesday, heading into 1.0550.
- A brief recovery off the back of US CPI inflation is unlikely to hold.
- Euro is set to close in the red against the Greenback for a fourth straight day.
EUR/USD continued to backslide on Wednesday, falling into 1.0550 and finding only a meager bounce from 54-week lows after US Consumer Price Index (CPI) inflation for October printed closely to median market forecasts. The Euro continues to shed fans as market participants struggle to find reasons to bid Fiber, leaving EUR/USD at the mercy of broad-market US Dollar flows.
US CPI inflation for October came in broadly as-expected on Wednesday, however final figures failed to make any progress toward cooling targets, and key annual measures accelerated on a yearly basis. US CPI rose 0.2% MoM in October, in-line with the previous month's inflation print, while 'supercore' CPI for the year ended in October rose 4.37% YoY compared to the previous period's print of 4.26%.
The US Dollar eased slightly post-CPI, giving Fiber a chance to recover its stance from year-long lows, however momentum remains thin as global markets broadly focus on US labor figures to spark further rates cuts from the Federal Reserve (Fed).
EUR/USD price forecast
With the Euro testing 54-week lows against the Greenback, the pressure is on for bidders to find a floor and push off from it before things decay to the point that EUR/USD backslides below the technical floor priced in near 1.0500. It's been a sharp turnaround in Fiber bids this year: just seven weeks ago, the Euro had set a year-plus high against the US Dollar just shy of 1.1300.
EUR/USD daily chart
Euro FAQs
The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB's primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates - or the expectation of higher rates - will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB's 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone's economy.
Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
Last updated
: 2024.11.14
Related articles
GBP/JPY declines as stronger growth data from Japan lifts the Yen
7 minutes agoUS Dollar retreats as traders opt to take profits following Trump trade rally
58 minutes agoUS: Republican swings - UBS
2024.11.15 21:12EUR/USD recovers with profit-taking in the Dollar bull run at the end of the week
2024.11.15 20:56GBP: EUR/GBP outlook remains soft - ING
2024.11.15 20:56The natural rate gap continues to drag the euro down - Societe Generale
2024.11.15 20:53
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
GBP/JPY declines as stronger growth data from Japan lifts the Yen
GBP/JPY trades lower by about a third of a percent, in the 197.10s on Friday, after the release of weak UK economic growth data led to a depreciation of the Pound Sterling (GBP).
New
2024.11.15 22:15US Dollar retreats as traders opt to take profits following Trump trade rally
The US Dollar (USD) declines on Friday, breaking a streak of five trading days of gains, as traders engage in profit-taking after the Trump-led rally pushed the Greenback to reach on Thursday its highest level this 2024.
New
2024.11.15 21:23US: Republican swings - UBS
In the past few days, the US economy has soared to new heights of economic prosperity--in the reported perception of Republican voters.
New
2024.11.15 21:12EUR/USD recovers with profit-taking in the Dollar bull run at the end of the week
EUR/USD slightly recovers on Friday after a brief test of the 1.0500 level the prior day. The pair has eased nearly 1.5% so far this week as markets have priced in more Trump trade effects. That move is now facing some profit-taking after a five-day losing
New
2024.11.15 20:56GBP: EUR/GBP outlook remains soft - ING
UK GDP is a bit disappointing, owing to a surprise fall in activity during September.
New
2024.11.15 20:56The natural rate gap continues to drag the euro down - Societe Generale
The neutral (or natural) rate of interest is both one of the more fashionable and most frustrating ideas in central bank watching.
New
2024.11.15 20:53USD/CNH: Next resistance above 7.2800 is at 7.3115 - UOB Group
The US Dollar (USD) is likely to trade in a range, probably between 7.2350 and 7.2700.
New
2024.11.15 20:45EUR: Key support at 1.050 is waiting - ING
EUR/USD tested 1.050 yesterday and then briefly rebounded before coming under pressure again around the 1.0580 area.
New
2024.11.15 20:42USD/JPY: The levels to monitor are 157.00 and 157.50 155.36 - UOB Group
The US Dollar (USD) is likely to continue to rise; the levels to monitor are 157.00 and 157.50.
New
2024.11.15 20:38USD: Moderately hawkish remarks by Powell - ING
The US Dollar (USD) is testing the limit of stretched positioning, but macro developments have so far failed to offer any real catalyst for a substantial unwinding of the greenback's longs.
New
2024.11.15 20:35Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
