The European Commission released the fresh Autumn forecasts for the eurozone. The commission lowered growth for the eurozone, expecting a 1.1% increase. This is down by 0.1 percentage point from the previous forecasts. The GDP for 2020 was also down from 1.4% previously to 1.2%. On inflation, the commission expects consumer prices to average 1.2% this year and gradually rise to 1.3% by 2021.
EUR/USD Could be Posting Further Declines
The currency pair is consolidating near the support area of 1.1075 – 1.1062. Price action is trading below this level. A strong close would confirm further declines. If this happens, the common currency will be targeting the lower support at the 1.1000 level. Given that this is a psychological level, we expect the EURUSD to stall at this support in the short term.