Release Time:2018-12-10 02:12
EURUSD (1.1380) • Eurozone GDP data rose 0.2% in Q3, in line with flash estimates, while data showed wages rises a little over 2.5% Y/Y. German Labour Costs data jumped 1.0% Q/Q in Q3 and rose 2.7% in the year. Rising labour costs and wages will give ECB policy makers a little more confidence in the inflation outlook as they confirm the winding down of asset purchases at next week’s policy meeting. The prospect of the ECB shifting towards policy normalization just as the Fed is thinking about turning neutral should help underpin the recent stabilization/gains in the EUR.
EURUSD short-term technicals: Neutral/bullish – EURUSD has traded narrowly through the overnight session on Friday, capped below 1.1400 but well-supported on dips to 1.1350/60. We continue to spot key resistance at 1.1430/35 on the daily chart but intraday patterns highlight the 1.1415 area as important, short-term resistance as well. Consider a push through 1.1415 as a “heads up” for an advance on 1.1435.