EUR/USD Pair Trades Sideways on Conflicting Eurozone Data

The EUR/USD currency pair today traded sideways even as markets reacted to conflicting reports from the Eurozone regarding GDP growth and inflation levels. The release of the Eurozone GDP growth data for the third quarter boosted the pair as it beat expectations, while the Eurozone CPI data disappointed as it was lower than expected.

The EUR/USD currency pair today traded in a 25-point range as the pair could not make a major break either higher or lower due to the conflicting data from the Eurozone.

The release of the Eurozone third quarter GDP flash estimate released by Eurostat boosted the currency pair as it beat expectations by coming in at 0.6% on a quarterly basis, as opposed to the expected 0.5% figure. The GDP figures also exceeded market consensus on an annual basis by coming in at an annualized 2.6% instead of the expected 2.5%. However, the Eurozone CPI estimate for October dragged the pair lower as it was below expectations; the CPI estimate was recorded at 1.4%, which was lower than the consensus of 1.5%. The core CPI was recorded at 0.9%, against the market consensus of 1.1%.

The release of the US consumer sentiment index for October by the Conference Board  and the ISM Chicago purchasing managers index boosted the greenback against the euro. The two indices beat expectations causing the currency pair to trade much lower.

Given tomorrow’s empty European docket, the currency pair’s future performance is likely to be influenced by political events in the Eurozone and releases from the US docket.

The EUR/USD currency pair was trading at 1.1636 as at 14:54 GMT having traded in a range between 1.1651 and 1.1624 for most of today. The EUR/JPY currency pair was trading at 132.01 having rallied from a low of 131.50.

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