The US dollar is drawing support from the upbeat US macro data on Thursday, which is seen as a major factor putting more pressure with each passing hour, leading to The price of the euro in dollars To begin a sharp decline in the price of the euro in dollars. The latest release of Q4 GDP reported that the US economy grew at an annual pace of 2.9% against the consensus estimate of 2.6%. In addition to the GDP data, the US Initial Jobless Claims report was released, which unexpectedly fell to 186,000 from 192,000.
Also of note, durable goods orders beat expectations and rose 5.6% in December, although orders excluding transportation items fell 0.1% month over month. This data clearly points to the US economy continuing to show resilience despite rapidly rising borrowing costs and argues that the Fed is likely to maintain its aggressive stance for longer than expected.
The fiber is close to a short correction but the ECB is not of the same opinion
The current correction of the Euro and the Dollar may soon come to a halt due to the more aggressive expectations of the European Central Bank compared to the past few months which would thus contribute to Limit any deep corrections.
It should be noted that many ECB officials have supported further rate hikes in the coming months (at least two increases of 50 basis points each) to combat high inflation. Therefore, it would be wise to wait for a strong sell-off to follow before confirming that EURUSD has formed a short-term top as many investors view any downside as a buying opportunity.
At the time of writing, as expected, the fiber price is trading at 1.0863, below the key level and down 0.24%. It is clear that the current momentum is bearish and while waiting for the US macro data today, the attempt of the Euro and Dollar institutions to test 1.0800 and the main support should not be underestimated.
The aforementioned level was acting a few weeks ago as an area close to the minimum of the previous sideways stage and could positively influence the EURUSD bulls to try to restore the scene and give a long jolt to the exchange rate. There are two short/medium-term targets for the currently most approved exchange rate, and they represent, respectively, the annual levels of 1.0920 and 1.1075.
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