The euro returned to the European market on Friday against a basket of global currencies, deepening losses for the fifth day in a row against the US dollar, its lowest level in four weeks, on the second monthly loss in a row, due to the strong prospects of the European Central Bank to take additional stimulus measures during next month's meeting In order to reassess those prospects, investors are looking ahead to today's key inflation data for Europe in August.
The euro fell against the dollar by 0.2% to $ 1.1035, the lowest since August 1, and the opening price of today's trading at $ 1.1056, and recorded the highest level at $ 1.1060.
The euro ended yesterday's trading down 0.2% against the dollar, the fourth consecutive daily loss, after weak data in Germany renewed fears of recession of the largest economy in the euro area.
The data showed that inflation slowed worse than expected in August, as well as rising unemployment during the same month, in the events of indicators of economic slowdown in Germany.
The ECB's next president, Christine Lagarde, said on Thursday the central bank still had room to cut interest rates if needed, although this could pose a risk to financial stability in Europe.
Over the course of the month of August, the single European currency, the euro, lost 0.4% against the US dollar, on the second monthly loss in a row, under the pressure of increased prospects for the European Central Bank to ease monetary policy and cut interest rates during the September meeting Next.
In order to reassess those prospects later in the day, key European inflation data will be released in August, continued weak data will push the euro to further losses against most major and minor currencies.
By 09:00 GMT, the preliminary reading of the consumer price index for August is expected to rise by 1.0% the same as the previous reading, excluding food and fuel prices expected to rise 1.0% from a rise of 0.9% in July.
Technical Analysis
The EURUSD pair continues to decline quietly to continue to approach the first target 1.1000, and the price moves within the descending channel that appears in the picture, keeping the bearish trend intact and likely during the coming sessions, noting that exceeding the mentioned level will push the price to 1.0857 as the next key target.
SMA 50 supports the suggested bearish wave, which requires stability below 1.1180.
Expected trading range for today is between 1.0950 support and 1.1100 resistance.
Expected trend for today: Bearish.