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EUR/USD
Source: Newsmaker.id
The EUR/USD pair corrected downward again on Friday (October 30) after failing to sustain gains above the 1.1215 level. Although still showing a marginal gain, the pair faces pressure as the US dollar begins to recover from its earlier weakness. The DXY (US Dollar Index) is hovering around 101.72, having previously touched a low of 101.59.
Pressure on the euro emerged following data indicating that the US economy is growing stronger than anticipated. US GDP for the third quarter grew by 3.4% on an annualized basis—surpassing the 3.2% expectation—driven primarily by household consumption and business investment, particularly within the information technology sector.
Regarding inflation, the US core PCE (Personal Consumption Expenditures) price index rose by 3.1% year-on-year, up from 3% in August and remaining above the Federal Reserve’s inflation target. This combination of solid economic growth and persistent inflationary pressure reinforces expectations that the Fed may still have room to raise interest rates in December.
In Europe, investor attention is focused on Germany’s HICP (Harmonised Index of Consumer Prices) data for October. Headline inflation is expected to slow to 3.1% year-on-year, down from 3.3% in September. This data will be closely watched, as it could influence expectations regarding European Central Bank (ECB) policy.
Newsmaker Analysis: Short-term fundamentals continue to favor the US dollar, given the strong growth of the US economy and persistently high inflation. As long as expectations for a Federal Reserve rate hike remain, the EUR/USD pair is likely to face downward pressure. Conversely, a higher-than-expected inflation figure from Germany could provide the euro with an opportunity to regain strength. (srh)
Source: Newsmaker.id