European CPI Figures in Highlights!
The EUR/USD pair was closed at $1.2189 after placing a high of $1.2205 and a low of $1.2132. EUR/USD pair continued its losses for the third consecutive session on Friday but managed to remain a little bullish for the week. The single currency Euro remained under pressure on Friday after worse-than-expected macroeconomic data released. The declining Euro added further pressure on EUR/USD currency pair and added losses for the day. Besides, the U.S. dollar remained firm against its rival currencies on Friday and reached above 90.4 level, adding extra downward pressure on EUR/USD prices. The 10-year note's Treasury yields fell to 1.57% that further caped gains in the U.S. dollar and limited the downside momentum in the EUR/USD.
On the data front, at 11:00 GMT, the German Import Prices surged to 1.4% against the projected 1.0% and supported the single currency Euro and limited the losses in EUR/USD pair. At 11:45 GMT, the French Consumer Spending was declined to -8.3% against the predicted -4.1% and weighed on Euro and added further losses in EUR/USD. The French Prelim CPI in May remained flat as expected 0.3%. The French Prelim GDP for the quarter declined to -0.1% against the estimated 0.4% and weighed on Euro that dragged EUR/USD further on the downside.
From the U.S. side, at 17:30 GMT, the Core PCE Price Index for April surged to 0.7% against the estimated 0.6% and supported the U.S. dollar and extended EUR/USD's losses. The Goods Trade Balance declined to -85.2B against the predicted -92.0B and supported the U.S. dollar and added further EUR/USD pair losses. In April, the Personal Income dropped to -13.1% against the anticipated -14.2% and supported the U.S. dollar and added EUR/USD pair losses. The Personal Spending in April remained flat as forecasted 0.5%.
The Prelim Wholesale Inventories increased to 0.8% against the projected 0.7% and weighed on the U.S. dollar that capped further downward momentum in the currency pair. At 18:45 GMT, the Chicago PMI rose to 75.2 against the anticipated 67.9 and supported the U.S. dollar. At 19:00 GMT, the Revised UoM Consumer Sentiment remained flat as predicted 82.9. The revised UoM Inflation Expectations in May also remained unchanged at 4.6%.
Meanwhile, the losses in EUR/USD were also limited after Europe saw a dramatic fall in coronavirus cases in time for summer. As the vaccination rates were accelerating across Europe, the hopes for a rebirth of the tourism industry in European countries increased. The tourism industry from Spain and Italy alone accounts for 13% of GDP, but it has been wiped out due to pandemics. This week, Europe saw the largest decline in new coronavirus infections and deaths as about 44% of adults had taken at least one dose of vaccine in the region. This added strength in the single currency Ero and limited the declining prices of the EUR/USD pair.
EURUSD Intraday Technical Levels
Pivot Point: 1.2194
EUR/USD - Technical Outlook
The EUR/USD pair stands still at 1.2193 level, facing a solid resistance at 1.2206 level on Monday. The resistance level is extended by the 20 & 50 periods EMA lines that we can see on the chart above. The pair has concluded series of Doji candlesticks that are suggesting the state of indecision among investors. It looks like the traders are awaiting the Inflation figures from the European countries. The EUR/USD's next support level holds around 1.2170 and the breakout of this exposes the pair towards the 1.2133 level. Likewise, the resistance stays at 1.2205, and upward breakout exposes the pair towards the 1.2263 resistance level today. All the best!
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