EUR/USD price slides over 3% as investors await Powell and Lagarde speeches
Euro slides against dollar as EUR/USD faces 3% drop amid political and economic events
The EUR/USD has faced notable pressure in November, posting a decline of over 3% so far. This downturn comes on the heels of key political and economic events, including the recent U.S. election results and a significant technical indicator known as the “death cross.”
When the 50-day moving average dips below the 100-day moving average, it often signals sustained bearish sentiment, and this instance has kept the euro sliding against the dollar.
Traders await data and speeches for clearer EUR/USD outlook
Today, additional volatility may arise from U.S. economic releases just ahead of high-profile speeches from European Central Bank (ECB) President Christine Lagarde and Federal Reserve (Fed) Chair Jerome Powell. The U.S. core Producer Price Index (PPI) data is expected to show improvement from previous levels, and could provide some strength to the dollar if it meets or surpasses expectations. At the same time, an anticipated rise in unemployment claims may offer a counterbalance, potentially dampening sentiment for the greenback.
Adding to the narrative, Powell’s upcoming panel discussion, scheduled for later today, often brings sharp market reactions as investors seek clues on the Fed’s stance on future rate adjustments. Traders will be keen to interpret his remarks, particularly since Powell has previously emphasized the need for flexibility depending on economic indicators. Similarly, Lagarde’s speech at the Choiseul Sovereignty Awards Ceremony could steer EUR/USD momentum if she signals a shift in the ECB’s approach to inflation and growth in the eurozone.
With EUR/USD now marking its fifth consecutive day of declines, all eyes are on these pivotal events to determine if the pair will find support or face further downside. A break below the 1.0500 support level could open the door for additional selling, though traders may hold off until today’s key data and speeches reveal clearer direction.
EUR/USD price slips as France's rising unemployment and fiscal uncertainty weigh on sentiment. Bank of France warns of stagnation in the fourth quarter, casting doubts over the region’s economic momentum.
