Euro Declines by 0.21% to $1.1631 Ahead of GDP Figures
FX UPDATE: The euro hovered around $1.16, down by 0.21% from the previous week’s levels, as positive signs emerged of a US-China deal, strengthening the greenback.
FX markets entered a crucial week filled with global trade negotiations, central bank meetings, and key economic data releases across Europe.
Investors welcomed signs of progress in US–China trade talks, with attention now turning to the upcoming meeting between Presidents Trump and Xi Jinping on Thursday, expected to finalize the framework of a preliminary deal discussed over the weekend.
The euro has forged a shelf around $1.1575. But it needs to rise above the $1.1655-70 area to lift the technical tone, according to FX market analysts.
EURUSD has held below $1.1650 today, where 640 million euro options expire. The markets anticipate the eurozone economy to grow by 0.1% in Q3, the same is in Q1. The year-over-year rate is seen slipping to 1.2% from 1.5%.
Meanwhile, the European Central Bank (ECB) is widely expected to hold interest rates steady at its Thursday meeting, while the US Federal Reserve is anticipated to cut borrowing costs amid signs of a slowing labor market and weaker-than-expected inflation.
Later in the week, the Euro Area will release flash third-quarter GDP figures and October inflation data, providing further insight into the region’s economic outlook.
Meanwhile, China’s decision to keep pushing the Chinese yuan higher is mildly negative for the dollar, ING analyst Chris Turner says in a note.
The People’s Bank of China continues to fix its daily reference rate for the dollar versus the yuan lower. It set the rate at 7.0881 yuan on Monday, compared to 7.0928 Friday. Stanbic IBTC Falls by 9.2% on Weak Investors Sentiment
