Euro and Pound Correct Ahead of Key Economic Data Releases

FXOpen -

The start of the final trading week of November has been eventful. Several currency pairs experienced a "gap" or price difference between Friday's close and Monday's opening. For instance, the GBP/USD pair opened 60 pips lower, EUR/USD saw a 70-pip gap, and USD/JPY opened with a 50-pip difference. At the week's outset, the USD faced a downward pullback, which in some pairs has since transitioned to a sideways trend. Analysts attribute this sharp retreat to market reactions following Trump’s selection of a Treasury Secretary. Scott Bessent recently stated that tariffs should be introduced gradually, and his supporters believe he could help curb the growth of the U.S. budget deficit.

EUR/USD

As anticipated, the EUR/USD pair has renewed last year’s lows, briefly trading below 1.0400. A sharp rebound from the 1.0330 level allowed buyers to regain momentum, pushing the pair up to 1.0540. Currently, the upward correction has shifted into a sideways movement within the 1.0500–1.0400 range. The next breakout with consolidation is likely to dictate the pair's direction:

  • A move above 1.0540 could prompt a test of the 1.0700–1.0800 zone.
  • A break below the recent low at 1.0330 might pave the way for a test of 1.0200–1.0000.

The upcoming trading sessions could be pivotal for EUR/USD, with the following key events on the calendar:

  • Today at 11:00 (GMT+3): European Central Bank non-monetary policy meeting
  • Today at 16:30 (GMT+3): U.S. GDP data for Q3
  • Today at 18:00 (GMT+3): U.S. core personal consumption expenditures price index
  • Tomorrow at 16:00 (GMT+3): Germany’s November consumer price index (CPI)

GBP/USD

Technical analysis of the GBP/USD pair suggests price consolidation within the 1.2620–1.2480 range.

  • If buyers manage to push the pair above 1.2620 during upcoming sessions, a robust upward correction towards 1.2720–1.2840 could develop.
  • Conversely, breaking the support at 1.2480 could renew bearish momentum, targeting 1.2350–1.2300.

Important UK economic data is expected on Friday, including mortgage lending figures and the Bank of England's financial stability report.