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EUR/USD gains ground, but recovery remains limited

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  • EUR/USD bounced back toward the 1.0600 handle on Wednesday.
  • Markets have stepped away from broad Greenback bidding pressure.
  • Volumes and trading flows set to be crimped through the rest of the week.

EUR/USD caught a broad-market bid on Wednesday, taking a new run at the 1.0600 handle during the midweek market session. Fiber’s bullish rebound was due mostly to investors broadly taking a step out of recent Greenback buying pressure, rather than any instrinsic strength within the Euro itself.

Wednesday’s data docket was entirely one-sided, delivering a wide chunk of US economic figures before US markets shutter exchanges for the Thanksgiving holiday on Thursday, to be followed by shortened trading hours on Friday. Annualized US Gross Domestic Product (GDP) grew by the expected 2.8% through the third quarter, to no one's surprise and barely moving the needle on investor pulses. Core Personal Consumption Expenditure Price Index (PCEPI) accelerated to 2.8% for the year ended in October, also meeting expectations. While upticks in inflation metrics generally bode poorly for market expectations of future rate cuts, the move upward was widely expected, and a hold in monthly figures at 0.3% MoM helped to frame the bump in the data as being in the rear-view mirror.



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