The post EUR/USD grips gains on robust Eurozone GDP growth, await US data appeared on BitcoinEthereumNews.com.

EUR/USD clings to gains near 1.0850 on upbeat Eurozone GDP growth and hot German inflation. ECB Lagarde sees more interest-rate cuts and said she is hopeful about inflation returning to the bank’s target of 2%. The US Dollar will be influenced by the US presidential election, NFP, and the ISM Manufacturing PMI data. EUR/USD holds up near 1.0850 in Thursday’s European session following Wednesday’s sharp recovery. The major currency pair strengthened as traders have pared back bets of a large interest-rate cut from the European Central Bank (ECB) in the December monetary policy meeting after a faster-than-expected Eurozone Gross Domestic Product (GDP) growth and hotter-than-forecasted German inflation. Eurostat reported on Wednesday that the Eurozone expanded at a faster pace of 0.9% in the third quarter of the year compared with the same period a year earlier. A major contribution to higher growth in the Eurozone came from its largest nation, Germany, which managed to dodge a technical recession. The German economy surprisingly rose by 0.2% compared with the previous quarter, beating expectations of a 0.1% contraction. Meanwhile, the growth rate in Spain was higher than expected, as forecasted in France, and slower than anticipated in Italy. The German flash Harmonized Index of Consumer Prices (HICP) for October accelerated at a faster pace of 2.4% on year, higher than estimates of 2.1% and the prior release of 1.8%, suggesting that the battle against inflation is yet not over.  “The just-released flash estimate of German inflation in October could make some members of the ECB regret the latest rate cut and the European Central Bank’s new openness to more aggressive cuts,” said analysts at ING. For more cues on the current status of inflation, investors will focus on the Eurozone flash HICP data for October, which will be published at 10:00 GMT.…

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Filed under: News - @ October 31, 2024 8:20 am