EURUSD: BUY 1.1170, SL 1.1070, TP 1.1370 | 19 May 2025

EURUSD:

The US Producer Price Index (PPI) rose 2.4% year-on-year in April, down from 2.7% growth in March and short of market expectations of 2.5%. The core PPI, which excludes food and energy, rose 3.1% year-on-year, down from the previous 4% increase. On a monthly basis, the core price index fell 0.5% and the core price index fell 0.4%.

U.S. initial jobless claims for the week ended May 10 came in at 229,000, unchanged from the previous week's revised figure and in line with expectations, according to the U.S. Department of Labour (DOL). Jobless claims for the week ended 3 May rose by 9,000 to 1.881 million.

Traders are likely to keep an eye on the University of Michigan (UoM) consumer sentiment index, which will be released on Friday. Market forecasters are expecting a rise in the consumer survey results, which have fallen for four consecutive months, hitting a two-year low of 52.2. Investors are hopeful that consumer sentiment will show some recovery, which could push the index up to 53.4.

Meanwhile, Eurozone Q1 GDP growth was revised down slightly to 0.3% quarter-on-quarter, down from the initial estimate and the previous reading of 0.4%. On an annualised basis, GDP grew by 1.2%, in line with expectations. The change in the number of employed persons for January-March, on the other hand, came as a surprise, rising 0.3% quarter-on-quarter, down from the initial estimate and the previous reading of 0.1%.

Trade recommendation: BUY 1.1170, SL 1.1070, TP 1.1370

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