The EUR/USD currency pair continued its downward trajectory for the fifth consecutive day, trading near 1.0550 during Thursday’s Asian session, marking new yearly lows. This persistent decline is primarily driven by a stronger US Dollar (USD), with “Trump trades” playing a significant role in bolstering the greenback.
Traders are now focused on the upcoming release of Eurozone GDP data, with the third-quarter growth estimate expected to confirm a 0.4% quarter-over-quarter expansion. Year-on-year, GDP is forecast to show a modest 0.9% increase, highlighting a lackluster economic performance in the region.
The spotlight will also be on key central bank figures, with European Central Bank (ECB) President Christine Lagarde scheduled to speak at the Choiseul Sovereignty Awards 2024 ceremony in Paris. Meanwhile, US Federal Reserve Chair Jerome Powell will participate in a panel discussion on “Global Perspectives” hosted by the Federal Reserve Bank of Dallas, offering potential insight into future US monetary policy.
The US Dollar Index (DXY), which tracks the greenback against six major currencies, remains firm around 106.60, its highest level since November 2023. This strength is being supported by rising US Treasury yields, with the 2-year and 10-year yields currently at 4.31% and 4.47%, respectively.
Recent US economic data has also helped sustain the dollar’s momentum. The US Consumer Price Index (CPI) rose 2.6% year-over-year in October, in line with market expectations, following a 2.4% increase in September. The monthly CPI remained steady at 0.2%, while the core CPI, which excludes volatile food and energy costs, also matched expectations, holding at 0.3% month-over-month and 3.3% year-over-year.
As the US dollar continues to strengthen, market participants will closely watch upcoming economic releases and central bank speeches for further indications of future monetary policy directions.
Related Topics:
