S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
Chart of the Day – EUR/USD attempts to rebound ahead of US inflation data
EUR/USD is in focus today ahead of the US CPI release scheduled for 14:30 Polish time. The market expects inflation to accelerate to 3.6% y/y from 3.4% previously and to 0.6% m/m from 0.4% previously . Higher gasoline prices may push up the September headline reading, although underlying inflationary pressures excluding food and energy are expected to show signs of moderation.
- In an extreme scenario that could support a renewed pullback in EUR/USD, we would expect higher-than-forecast readings for both headline and core CPI. Such an outcome would suggest that inflationary pressures are gradually broadening beyond volatile energy and food prices.
- On the other hand, CPI readings in line with or below expectations, accompanied by relatively subdued core inflation, could provide an interesting backdrop for a rebound in EUR/USD and potentially push market expectations for US rate hikes from 2026 into 2027.
EUR/USD chart (H1, D1 intervals)
EUR/USD is currently trading at its lowest levels since late spring 2025, although the pair has started to stabilize around 1.12. We can also see the RSI beginning to rebound from oversold territory and approaching 33, while a potentially bullish moving-average crossover is forming on the MACD. The key short-term resistance may be around 1.135, defined by recent price reactions in this area, while the nearest support is located around 1.114.
Source: XTB The importance of the 1.135 resistance area is also reinforced by the fact that it corresponds to the 38.2% Fibonacci retracement of the downward wave that began in late summer this year. Price reactions may also emerge around 1.128 along the way, although it is worth stressing that a rebound is by no means guaranteed. A move back toward 1.114 could potentially open the way for EUR/USD to decline toward the 1.10 area.
Source: XTB
