EUR/USD: US GDP in the spotlight

KEY GRAPHIC ELEMENTS
Forex traders are likely to see volatility in the foreign exchange market as we await the publication of the US Gross Domestic Product (GDP) this afternoon in addition to weekly jobless claims. This information is important now that the Fed considers that the work is almost done regarding inflation, it will monitor the labor market and the growth of the US economy more closely.

In Europe this morning, the inflation figure for Spain was published, which continues to slow, reinforcing the European Central Bank (ECB) in its easing. This news, however, is causing the euro to fall in the very short term. Spanish inflation had reached a record 10.9% after Russia invaded Ukraine in early 2022, it is now moving close to 2%. The prospect of a US rate cut next month has caused the dollar to fall so far, but traders now want to know the Fed's trajectory for the coming months before going further. The dollar has been strengthening for a few hours following news that the US Federal Reserve announced that it had subjected major banks to annual stress tests. It has also agreed to reduce the burden on Goldman Sachs.

Technical section: The European currency continues to consolidate. As expected, it is back in contact with the 20-period daily moving average. We will monitor reactions on support to get back in the direction of the upward trend.

MEDIUM-TERM FORECAST
In view of the key graphic factors that we have mentioned, our opinion is neutral in the medium term on the EUR/USD.

We will maintain this neutral opinion as long as EUR/USD prices are positioned between the support at $1.1069 and the resistance at $1.1134.