• EUR/USD tested lower on Thursday, finding the 200-day EMA.
• Euro data remains thin this week, leaving Fiber to churn on US data.
• Coming up on Friday: US PPI inflation, UoM consumer sentiment figures.

EUR/USD managed to maintain a finger grip on chart paper north of the 1.9000 handle. Fiber wound up closing lower, but recovered just enough to pull back from a deeper test of the 200-day Exponential Moving Average (EMA) near the 1.0900 handle.

Headline US CPI inflation fell less than expected through the year ended in September, declining from 2.5% to 2.4%. Median market forecasts had called for a print of 2.4% YoY. On the other hand, core US CPI inflation ticked higher YoY in September, rising to 3.3% from the previous 3.2%. 

US Initial Jobless Claims unexpectedly rose for the week ended October 4, climbing to 258K week-on-week and clipping the highest rate of new jobless benefits seekers since June of 2023. 

Mixed rate-impacting data flummoxed rate markets on Thursday. Rising unemployment figures bolster hopes for rate cuts as the Federal Reserve (Fed) looks to keep the US labor market afloat, while still-hot inflation makes it harder for investors to expect a faster pace and depth of rate trims.

Meaningful European economic data points are almost entirely absent on Friday, leaving Fiber traders at the mercy of overall Greenback flows to wrap up the trading week.