EUR/USD clinches tops above 1.1400 on dovish Fedspeak
|- The index gathers further traction and surpasses the 1.1400 handle.
- The greenback tumbles to session lows near 96.60.
- US Industrial Production expanded 0.1% MoM in October.
EUR/USD breaks above the daily consolidative theme and is now flirting with fresh tops around the critical 1.1400 handle.
EUR/USD up on Clarida comments
Dovish comments from fresh Vice Chairman Richard Clarida sent the greenback lower at the end of the week, forcing at the same time yields of the key US 10-year note to drop to sub-3.09% levels, also recording daily troughs.
Sellers around the buck quickly stepped in after Clarida warned the Federal Reserve should be somewhat concerned over ‘some evidence of global slowing’, while he also said he does not expect ‘big pick up in inflation next year’.
Back to the US calendar, Industrial Production expanded at a monthly 0.1% during last month, a tad below consensus. Following these figures, Senior Market Analyst at FX Street Joseph Trevisani noted : “The US manufacturing sector remained healthy in October rising 0.3%. The overall industrial sector gain of 0.1% was dragged down by a 0.3% decline in mining and a 0.5% drop in utility output”.
Further out, Capacity Utilization Rate came in at 78.4% in the same period vs. 78.3% forecasted.
EUR/USD levels to watch
At the moment, the pair is up 0.67% at 1.1404 facing the next hurdle at 1.1449 (50% Fibo of the 2017-2018 rally) seconded by 1.1502 (high Nov.7) and then 1.1519 (55-day SMA). On the other hand, a break below 1.1214 (2018 low Nov.12) would target 1.1188 (61.8% Fibo retracement of the 2017-2018 up move) en route to 1.1118 (low Jun.20 2017).
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