EUR Analysis 31.10.2019

The euro rose on the European market on Thursday against a basket of global currencies, continuing its gains for the fourth day in a row against the US dollar, in connection with the first monthly gain in the last four months, and the biggest monthly gain in about 21 months, comes ahead of the release of important data from Europe, Economic growth during the third quarter of this year, and for inflation levels during October.

The euro rose against the dollar by about 0.2% to $ 1.1170, and the opening price of the day at $ 1.1152, and recorded the lowest level at $ 1.1151.

Yesterday, the euro gained 0.4% against the dollar, its third daily gain in a row, benefiting from falling US currency levels following the Federal Reserve's decisions.

In October trading, which officially ends when prices are settled today, the euro has so far gained 2.5% against the US dollar, making its first monthly gain in the last four months, the largest monthly gain since January 2018.

This strong monthly gain is attributed to many reasons, including the decline in the levels of buying the US currency as the best investment currently in the foreign exchange market, the easing of fears deepening the gap between the course of monetary policy in Europe and the United States, and positive developments in the separation of Britain from the European Union "Brexit" .

Later in the day investors were looking ahead to several important data from Europe on economic growth in the third quarter of this year, and on key inflation levels in October, providing strong evidence that the ECB may take new stimulus measures at upcoming meetings.

Europe's GDP is expected to grow by 0.1% in the third quarter of 2019, the European economy grew by 0.2% in the second quarter, and the annualized reading is expected to grow by 1.1% from 1.2% growth in the previous quarter. .

At the same time, the preliminary October CPI is expected to rise by 0.7% from a 0.9% rise in September, excluding food and fuel prices, which are expected to rise 1.0% from the previous reading.

Technical Analysis

The EURUSD pair rallied significantly yesterday after the US Federal Reserve's decision to cut interest rates for the dollar a quarter point to reach the first target at 1.1180, reinforcing expectations for the continuation of the bullish trend in the coming period, waiting for a breach of the mentioned level to open the way towards 1.1280 as a next stop. .

Therefore, we will continue to favor the bullish bias on the intraday and short term basis, noting the importance of stability above 1.1065 to continue the expected rise.

Expected trading range for today is between 1.1080 support and 1.1250 resistance.

Expected trend for today: Bullish.