EUR/USD Price Update: German Inflation Falls, US GDP Revised Upward
- German inflation falls more than expected, increasing by 1.9% YoY in August.
- US Q2 Gross Domestic Product revised upward to 3%.
- EUR/USD at fresh weekly lows, poised for further decline.
The EUR/USD pair dropped to 1.1072 early on Thursday, showing signs of continued weakness as the US Dollar gained strength during European trading hours. The negative sentiment was driven by concerns in the market.
NVIDIA, a major player in AI and chips, reported earnings that beat expectations, but its shares fell by 8% as revenue guidance for the current quarter missed estimates. The company also faced challenges in developing new chips, leading to the decline.
While Asian markets closed lower, European markets managed to stay in the green, halting the advance of the USD.
On the data front, Germany reported lower-than-expected inflation in August. The CPI rose by 1.9% YoY, below the anticipated 2.1%, with a 0.1% decrease from the previous month. The HICP also showed a 2.0% increase YoY and a 0.2% decline from July.
In the US, Initial Jobless Claims for the week ended August 23 decreased to 231K, beating expectations. The second estimate of Q2 GDP was revised upward to 3%, providing additional support for the USD.
EUR/USD Technical Analysis
The daily chart suggests further downside for the EUR/USD pair, with technical indicators pointing south. The 20 SMA offers support at around 1.1020, with a break below potentially leading to more selling pressure.
On the 4-hour chart, the downward momentum has eased slightly, but the risk remains tilted to the downside. The 20 SMA acts as resistance at around 1.1145, indicating a potential barrier for any upside movement.
Support levels: 1.1065, 1.1020, 1.0985
Resistance levels: 1.1110, 1.1145, 1.1190