FX.co ★ Hot Forecast for EUR/USD on 31.10.2024

Although the preliminary Eurozone GDP estimate accelerated from 0.6% to 0.9%, it was still somewhat below the expected 1.0%. Nevertheless, the euro managed to show a notable rise. This is due to the comparable data from the United States, where growth rates were expected to remain unchanged. Instead, the U.S. economy slowed from 3.0% to 2.7%. Thus, while the European economy is accelerating, the American one is slowing down. It's no surprise that the euro was able to strengthen its position.

This situation has occurred recently, but the market quickly reverted to previous levels afterward. However, today could follow a different scenario, with the euro potentially continuing to strengthen. Much will depend on the preliminary inflation estimate for the Eurozone. Forecasts suggest that the growth rate of consumer prices could accelerate from 1.7% to 1.9%. If this is the case, the European Central Bank may at least slow the pace of its monetary policy easing, which has recently been the main reason for the euro's significant weakening.