Title : EUR/USD comes under pressure near 0.9800 post-PMIs
- analysiswatch
- Oct 24, 2022
- 2 min read

Oct 24, 2022 4:07 AM ET
By: AnalysisWatch
The single currency comes under slight downward pressure and carries EUR/USD to the 0.9820 area on Monday.
EUR/USD is now facing selling pressure and giving up some ground after two consecutive daily advances thanks to the slight recovery of the dollar, despite the downward movement in US yields.
Still in the debt markets, German 10-year bund yields fell to 3-day lows and neared the 2.30% level, having reached 2.53% late last week.
Looking ahead, the pair is expected to remain in a consolidating mood ahead of Thursday's ECB event, where market participants largely anticipate a 75 basis point rate hike by the central bank.
EUR/USD is now facing a corrective decline, although it has so far managed to hold the price above the 0.9800 mark for the time being.
In the meantime, price action around the European currency is expected to closely follow the dollar dynamics, geopolitical concerns, and the divergence between the US and the ECB. Following the latest results of leading economic indicators, the latter is expected to extend further amid the continued resilience of the U.S. economy.
In addition, growing speculation about a possible recession in the region—which seems underpinned by declining sentiment indicators as well as the incipient slowdown in some fundamentals—adds to the sour sentiment around the euro.
Key euro area events this week: German and EU advanced manufacturing and services. PMIs (Monday) -German business climate IFO (Tuesday)-French consumer confidence (Wednesday)-German GfK consumer confidence, Italian consumer confidence, ECB interest rate decision, ECB Lagarde-France/Italy/Germany (Thursday) Final consumer confidence and economic sentiment in the EMU
Remaining issues: the continuation of the ECB hiking cycle in the face of growing recession risks; The impact of the war in Ukraine and the lingering energy crisis on the region's growth and inflation outlook.
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