The EURUSD pair: nerves of steel. Overview for 27.10.2023

The main currency pair on Friday keeps balance. The current EURUSD exchange rate stands at 1.0566.

The currency market has faced an avalanche of statistics and other information.

At the last meeting, the European central bank decided to leave the interest rate at 4.5% per annum. For now, the regulator does not consider softening its credit and monetary policy. It has more or less managed to take inflation under control but the prospects look vague. The ECB keeps at hand all of its fiscal tools, ready to use them if necessary.

The US surprised the market by a preliminary Q3 GDP report. The economy skyrocketed by 4.9% instead of the 4.3% expected. In Q2, the GDP added 2.1%.

Is this rise more than two times good or bad? In theory, it is great. In practice, things will become even more complicated because the Fed might use these data as the reason for continuing its tight credit and monetary policy. For the dollar, this is good, but for the market, this is bad.

Durable goods order volume in September increased by 4.7% after a symbolic rise by 0.2% in August. It seems that consumers and companies expect prices to keep growing and have started buying actively.

On Friday, the data will also be abundant. Among reports, take a look at the US personal income/spending release and the Core PCE report, which is an inflation component that the Fed specifically cares for.