The euro (EUR) corrected throughout Wednesday and lost 0.3% after a substantial rise on Tuesday.
Possible effects for traders
Strong Retail Sales report and indications of easing inflation bolstered the U.S. dollar, contributing to beliefs about a ‘soft landing’ of the U.S. economy. This scenario suggests the Federal Reserve might delay rate cuts and keep the base rate high longer. Eurozone Industrial Production figures showed a month-over-month decrease of 1.1% in September, a drastic difference compared to a 0.6% increase previously. Annually, the production showed a decline of 6.9%, a larger one than the prior 5.1% decrease. Lower Industrial Production figures put a substantial downward pressure on the euro.
In today’s Asian trading session, EURUSD lost momentum as increased U.S. dollar demand exerted bearish pressure on the pair. Market participants will closely observe the European Central Bank (ECB) President Christine Lagarde’s speech at 11:30 a.m. UTC today and the release of the U.S. weekly Initial Jobless Claims at 12:30 p.m. UTC. The data could affect the euro’s price.
