EUR/USD, GBP/USD, DXY Price Forecast: DXY Breaks $104.50; More Gains Ahead?

During the early European session, the Euro faced some pressure following French consumer spending data, which fell by 0.5%, and Spanish Flash CPI, which came in at 2.8%, below expectations. However, French Flash GDP held steady at 0.3%, providing some stability.

The German Prelim CPI showed a modest rise of 0.3%, aligning with forecasts, while the Spanish Flash GDP met expectations at 0.8%. These mixed results have led to a cautious approach among traders, with the EUR/USD hovering around 1.1040.

Events Ahead

Looking ahead, Italian and German Prelim GDP data are expected, with forecasts of 0.2% and 0.1% growth, respectively. A broader Prelim Flash GDP for the Eurozone is anticipated at 0.2%. These figures will be critical for the Euro’s short-term outlook.

Additionally, bond auctions in Italy and the UK will provide insights into investor confidence, with the Italian 10-year bond yield currently at 4.01% and the UK’s at 4.07%.

In the US, consumer confidence data is expected to show a slight dip to 99.7, while job openings (JOLTS) are projected at 8.02 million. The Dollar Index, currently around 102.50, may see volatility based on these outcomes.

If consumer confidence and job openings fall short of expectations, we might see pressure on the USD, which could benefit both the EUR/USD and GBP/USD pairs.