EUR/USD correction after strong data from U. S.
2023.01.27 09:19
EUR/USD correction after strong data from U. S.
Budrigannews.com – Following the release of upbeat US macroeconomic data on Thursday, the pair fell back below the 1.0900 level during American trading hours. Wall Street indexes fell in the wake of the data, favoring the greenback, while investors continued to evaluate the economic figures.
The EUR/USD pair is trading at 1.0885 at the time of writing, 0.25 percent below its opening price. In the final quarter of 2022, the gross domestic product of the United States expanded at an annualized rate of 2.9%, which was higher than the market consensus of 2.6% but lower than the rate of 3.2% in the preceding quarter.
The fourth-quarter price index decreased from 4.7% in the third quarter to 3.9%. Separate data indicated that durable goods orders increased by 5.6% in December as a result of numerous new Boeing contracts (NYSE:). aircraft for passengers.
The Core Personal Consumption Expenditure (PCE) Price Index, which will be released monthly and annually on Friday, may have a significant impact on the Federal Reserve’s interest rate decision next week. Markets continue to price in a higher likelihood of a 25-bps increase and a mere 5-percent probability of a 50-bps increase at the moment.
Even though indicators have lost momentum over the past few sessions, the daily chart of the EUR/USD indicates that the technical outlook for the short term remains positive. In the meantime, pullbacks are regarded as corrective as the pair continues to trade near its multi-month highs and above its primary moving averages.
A decisive break above the 1.0925-35 region is required for the EUR/USD pair to allow for further gains toward the psychological 1.1000 level. On the other hand, if the 1.0835 zone were to fall, 1.0800 and the 1.0760 20-day SMA would become visible.
