EUR/USD is trading around 1.1640 after bouncing off the lows of 1.1575. The pair has licked its wounds related to the Draghi’s open door for further bond buying beyond September 2018. It is not spooked by Halloween.
Support awaits at the 2016 high of 1.1620 and resistance is at 1.1670. Further resistance is only at 1.1780, which served as a key level before the pair collapsed.
France reported a growth rate of 0.5% in Q3 2017 in its preliminary read. This fully matches expectations. Year over year, the second-largest economy in the euro-zone has expanded by 2.2%, slightly above expectations and significantly above 1.8% reported in Q2.
Later in the day, we will get the first estimate for inflation in October and GDP for the whole euro-zone. So far, French and Spanish numbers came out as expected.
And speaking about Spain, the political drama continues at full force but for financial markets, the worries seem to be over. Yesterday we learned that the Spanish prosecution is charging the ousted Catalan government with the serious crime of rebellion. Catalonia’s former president Carles Puigdemont and several members of his cabinet fled to Brussels. They seek to internationalize the conflict and also escape the prosecution.
All in all, the news flow remains interesting but the euro sunk back into trading at a limited range. Can it wake up soon? We have bigger events coming up, especially from the US.
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