EUR/USD clings to gain, stays sidelined below 1.1200
|- EUR/USD loses momentum just above the 1.1200 mark.
- The greenback remains vulnerable near 97.70.
- Spot rebounds from 2019 lows near 1.1100.
The single currency manages well to keep daily gains so far on Friday, taking EUR/USD fresh peaks just beyond 1.1200 the figure, where it lost some momentum.
EUR/USD looks to data, trade
While trade jitters continue to dictate the global sentiment for the time being, markets remain on a sideline theme as investors keep digesting yesterday’s miserable prints from the US docket and the significant drop in US yields.
In the meantime, there seems to be some feeling of respite in the risk-associated complex, which is helping spot to stick to the positive territory so far this week, partially reversing last week’s pullback.
Later in the NA session, April’s Durable Goods Orders will be the sole release ahead of the weekly report on US drilling activity by Baker Hughes.
What to look for around EUR
Recent data releases in Euroland and Germany have poured cold water over the idea that some healing process could be underway in the region, re-shifting the focus to the ongoing slowdown and its probable duration and extension. This view has been reinforced in recent ECB minutes, where the Council appeared unconvinced about a pick up in the economic activity in the medium term horizon. That said, the current ‘neutral/dovish’ stance from the ECB is expected to persist for the remainder of the year and probable through H1 2020. The broad-based risk-appetite trends and USD-dynamics should dictate the sentiment surrounding the European currency for the time being, all in combination with the now stalled US-China negotiations and potential US tariffs on EU products. On the political front, Italy has re-emerged as a source of uncertainty and volatility, while investors’ focus has now shifted to the results of the EU parliamentary elections (Sunday).
EUR/USD levels to watch
At the moment, the pair is gaining 0.04% at 1.1186 and a breakout of 1.1205 (high May 24) would target 1.1217 (23.6% Fibo of the 2019 drop) en route to 1.1236 (55-day SMA). On the flip side, immediate support lines up at 1.1107 (2019 low May 23) seconded by 1.0905 (high Mar.27 2017) and finally 1.0839 (monthly low May 2017).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.