(News Bulletin 247) – This article, freely accessible, is produced by the News Bulletin 247 stock market analysis and strategy research team. To not miss any opportunity, consult the full analyses and discover our portfolios by accessing our Privileges area.
The Euro remained well oriented against the Dollar, now in the immediate vicinity of its annual peaks, two days after the Fed’s decision to cut its key rates by 50 basis points.
This decision was accompanied by new economic projections: the powerful monetary institution headed by J Powell revised upwards its unemployment forecasts to 4.4% for the current year and the next, and downwards its inflation forecasts for 2025 to 2.1%.
“This decision reflects our growing confidence that with an appropriate recalibration of our policy stance, labor market strength can be maintained in a context of moderate growth and inflation falling sustainably to 2 percent,” he also said at a news conference following the rate decision. The central banker warned that no trajectory is set in stone at this stage. “We can accelerate if warranted, slow down, pause” in the monetary easing cycle, depending on economic data.
“The Fed is concerned about the continued deterioration in the labor market and has responded accordingly,” reads Rob Dishner, Senior Manager at Neuberger Berman. The next major employment event will be the release of the NFP (Non Farm Payrolls) report on October 4. In the meantime, traders were able to take note yesterday of weekly jobless claims, down slightly to 219,000 new units, compared to a target of 230,000.
For statistical completeness, the markets yesterday took note of the Philadelphia Fed Manufacturing Index, which returned to positive territory at 1.7.
The single currency, one of the most reliable barometers of risk appetite in financial markets, remained supported by hopes of support measures in China.
“The authorities have still not made any clear and official announcements, but the accumulation of information concerning the real estate sector, communicated via sources close to the discussions, over several weeks, shows that things are moving,” notes Alexandre Baradez (IG France).
“The implementation of these measures would allow the authorities to play on two tables: continue to stabilize and support a real estate market that has been in poor shape for more than 3 years… but also restore purchasing power and confidence to Chinese consumers, which would support domestic demand.”
On the agenda this Friday, to follow in priority the consumer confidence index in the Eurozone at 4:00 p.m. and a speech by Mrs. Christine Lagarde, President of the BCE, at the Michel Camdessus conference on central banks, in Washington DC.
At midday on the foreign exchange market, the Euro was trading against $1,1160 approximately.
KEY GRAPHIC ELEMENTS
In view of the reaction of the spot In contact with the bullish oblique line drawn in black, the chart pattern drawn at the turn of August loses its meaning. We are once again adopting a neutral position on the flagship currency pair.
MEDIUM TERM FORECAST
Considering the key graphic factors that we have mentioned, our opinion is neutral in the medium term on the Euro Dollar (EURUSD) parity.
We will maintain this neutral opinion as long as the Euro Dollar (EURUSD) parity rates are positioned between the support at 1.1012 USD and the resistance at 1.1250 USD.
The News Bulletin 247 council
DAILY DATA CHART
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
