Euro Outlook: EUR/USD EUR/USD extends the advance from the start of the week as the Euro Area Gross Domestic Product (GDP) report shows a larger-than-expected rise in the growth rate, and the exchange rate may further retrace the decline from the start of the month as the Relative Strength Index (RSI) continues to recover from oversold territory. Euro Forecast: EUR/USD Recovery Persists Ahead of Euro Area CPI Report EUR/USD trades to a fresh weekly high (1.0871) as the Euro Area expands 0.4% in the third quarter of 2024 versus forecasts for a 0.2% print, and little signs of an imminent recession may encourage the European Central Bank (ECB) to the keep interest rates on hold following the 25bp rate cut at the October meeting. Join David Song for the Weekly Fundamental Market Outlook webinar. David provides a market overview and takes questions in real-time. Register Here In turn, the ECB may continue to unwind its restrictive policy at a gradual pace as the central bank is ‘determined to ensure that inflation returns to our two per cent medium-term target in a timely manner,’ but the update to the Euro Area Consumer Price Index (CPI) may put pressure on the central bank to achieve a neutral policy sooner rather than later as the report is anticipated to show another slowdown in core inflation