EUR/USD Current Price: 1.1006
- US President Trump to meet Chinese Premier Liu He on Friday.
- Brexit-related headlines helped to keep the shared currency afloat.
- EUR/USD jumped above 1.1000 on a trade deal, Brexit hopes.
The American dollar fell sharply during the European session, recovering just modestly during US trading hours, to later resumed its decline. The EUR/USD jumped to 1.1033, its highest in three weeks, retreating toward the 1.1000 figure afterwards. Still, the pair holds on to gains by the end of the US session, amid a better perception of risk.
Light at the end of the political-turmoil tunnel
The market’s sentiment was sour at the beginning of the day as a news agency reported limited trade talks would be taking place this Thursday. Asian shares and Wall Street futures plunged with the headlines but changed course following the next round of news suggesting that the US was considering suspending part of its tariffs, and exemptions from sanctions against Huawei. US President Trump later tweeted that he will meet Chinese Vice Premier Liu He on Friday, further fueling risk-on mood.
Meanwhile, UK PM Johnson and his Irish counterpart Leo Varadkar have a long meeting that ended with the last declaring that he believes is possible to come to an agreement before October 31. The Pound soared, helping high yielding assets to retain their strength against the greenback.
The market ignored macroeconomic data. Germany released its August Trade Balance, which posted a smaller-than-expected surplus of €18.1B vs the previous €20.5B, while the US released Initial Jobless Claims for the week ended October 4, which came in better-than-anticipated at 210K, and the final version of September inflation, with the core annual CPI resulting at 2.4% as expected.
This Friday, Germany will release September inflation, while ECB’s President Draghi is due to speak. The US will publish the preliminary October Michigan Consumer Sentiment Index foreseen at 92.0 from the previous 93.2.
EUR/USD short-term technical outlook
The EUR/USD pair is trading around the 61.8% retracement of its September decline, measured between 1.1109 and 1.0878 at 1.1020. The short-term picture is positive, as the pair is comfortably developing above all of its moving averages, with the 20 SMA now crossing above the 100 SMA. The latest intraday slide was contained by buyers around the 200 SMA. Technical indicators in the mentioned chart have lost their strength upward, with the Momentum easing within positive levels but the RSI holding close to overbought readings. The immediate resistance is 1.1045, the level to surpass to confirm further gains heading into the weekend.
Support levels: 1.1000 1.0960 1.0920
Resistance levels: 1.1045 1.1080 1.1120
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD rises toward 1.0700 after Germany and EU PMI data
EUR/USD gains traction and rises toward 1.0700 in the European session on Monday. HCOB Composite PMI data from Germany and the Eurozone came in better than expected, providing a boost to the Euro. Focus shifts US PMI readings.
GBP/USD holds above 1.2350 after UK PMIs
GBP/USD clings to modest daily gains above 1.2350 in the European session on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling gather strength.
Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets
Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.