Euro Strengthens Despite German GDP Flatline
Economic figures released on Tuesday showed weaker-than-expected growth in US retail sales for September. The Producer Price Index (PPI) held steady with a year-on-year increase of 2.7%, while the Consumer Confidence Index dropped to a six-month low of 88.7 in November.
These indicators have weakened the economic outlook for the United States and reinforced market expectations for monetary easing, putting additional pressure on the US Dollar.
Representatives from the United States and Ukraine continue to work on a roadmap for a peace agreement. The President of the United States announced that the original plan has been revised with input from both sides, and that a special envoy will meet with the Russian President next week.
The positive response from Ukrainian President Volodymyr Zelensky has improved market sentiment and provided further support for the Euro.
During Wednesday’s US trading session, investors will monitor the release of Durable Goods Orders and Initial Jobless Claims. Later, European Central Bank President Christine Lagarde and board member Philip Lane are scheduled to hold a press conference.
According to the daily currency change table, the Euro posted its strongest gains against the Japanese Yen and rose 0.20% against the US Dollar. However, it declined against the New Zealand and Australian Dollars.
The EUR/USD pair has broken above the 1.1550 resistance and is now testing the 1.1600 level. The 4-hour RSI is approaching overbought territory, and the MACD has crossed above the zero line, indicating strengthening bullish momentum.
Next resistance levels are seen at 1.1625 and 1.1670. A break above these could pave the way for further upside.
On the downside, 1.1550 now acts as support. A break below this level could increase selling pressure and drive the pair toward previous lows at 1.1470 and 1.1425.