EUR/USD Trades Sideways on Eurozone and US Data

The EUR/USD currency pair was on a downtrend for most of the European session after the release of Eurozone CPI data for October. The pair later rebounded in the early American session after the release of US macro data.

The EUR/USD was trading in a 45 point range after hitting a high of 1.1800 early in the European session followed by a steady decline to a daily low of 1.1756 in the mid-European session.

Th release of the Eurozone CPI data by Eurostat at 10:00 GMT contributed to the euro’s early decline despite the print meeting expectations. The CPI data came in at 0.1% on a monthly basis in October, while it was recorded at 1.4% on an annualized basis. The core CPI print came in at 0.9% on an annualized basis, which was also in line with expectations.

The higher demand for the US dollar was the main driver behind the currency pair’s decline as investors exhibited a high appetite for risk. However, demand for the US dollar diminished after the release of disappointing initial jobless claims data by the Department of Labor. The jobless claims for the week ended November 11 were recorded at 249,000, which was higher than the expected 235,000. The Philadelphia Fed Business Outlook also contributed to the currency pair’s rally as it came in at 22.7, which was lower than the expected 24.6.

The currency pair’s short-term performance is likely to be influenced by speeches from Fed speakers including Lael Brainard, Lorreta Mester and Robert Kaplan.

The EUR/USD currency pair was trading at 1.1766 as at 15:26 GMT having declined from a daily high of 1.1800. The EUR/USD currency pair was trading at 132.79 having dropped from a high of 133.45.

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