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EU GDP Growth Forecast to Slow Down

11/15/2022 12:08 PM

The EUR/USD pair is moving around the level of 1.0408.

The European currency is strengthening with a downward correction of the US dollar against the backdrop of the first positive macroeconomic statistics and lower natural gas prices in a long time. Yesterday, data on the volume of industrial production in the EU in September were published: the growth of the indicator was 0.9% instead of the forecasts of 0.3%, which contributed to an increase in the annual value by 4.9% instead of the expected 2.8%. Today, the situation may change after the publication of statistics on the state of the EU economy. According to preliminary forecasts, the region's gross domestic product (GDP) in the third quarter will adjust by 0.2% from 0.8% earlier and slow down the positive dynamics to 2.1 % from 4.3% YoY, which may be a negative signal for the market.

The US dollar has slowed down its fall and is holding around 106.800 in the USD Index. Investors were disappointed by the news from the state of Nevada, where the count of votes in the primary elections for the national Congress was completed, according to which Democratic candidate Catherine Cortez Masto won. It means that the Democratic Party won 50 seats in the Senate and, given the vote of Vice President Kamala Harris, retained control of the upper house of Congress. Thus, the victory of the party of the head of the White House, Joe Biden, was an important signal for the markets, given not only his low approval rating but also the current level of unprecedented inflation in the United States, which reached forty-year highs.

The trading instrument continues its corrective growth on the daily chart and confidently holds within the local ascending corridor.

Technical indicators strengthen the buy signal: fast EMAs on the Alligator indicator widen the swing range upwards, and the AO oscillator histogram forms upward bars, rising in the buying zone.

Resistance levels: 1.0370, 1.0590. | Support levels: 1.0258, 1.0078.

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