The EURUSD exchange rate faces two days of economic data, and the pair could see volatility.
The current price of the euro versus the US dollar is 1.0277, with clear support and resistance levels in play.
EURUSD – 4H Chart
The recent highs in the pair were 1.045, and the support came in at 1.010.
The first release on Wednesday is durable goods orders from the US, which are new orders placed with manufacturers to deliver hard goods with a lifespan of at least three years. The figure is expected to improve by 0.4%, matching last month.
That is followed by consumer sentiment, which will be the more important number. The figure is expected to dip to 55 from 59.9 last month.
The latest FOMC minutes can be bearish for the US dollar after Fed officials have tried to back off from aggressive rate hikes.
Markets expect a 50 bps rate hike from the Fed at their December meeting. That theory will be tested with the latest meeting minutes.
Thursday then moves to European data with the latest ifo Business Climate Sentiment index, which is expected to hit 85 after a multi-month decline saw the figure hit 84.3. That is followed by the European Central Bank version of policy meeting minutes.
Friday brings consumer confidence data for Europe’s largest economy, Germany, with markets expecting a reading of -39.6 as the index slows with a recession looming.
According to the latest data, Germany has struggled with inflation as the price of consumer goods and services is rising at double-digit rates. CPI inflation rose to 10.4% in October, higher than economists’ forecasts. Inflationary pressures extend throughout the economy and pressure the ECB to hike higher rates and catch up to the Federal Reserve.
