EUR/USD: Dollar is under challenge approach 1,1800 on US GDP day

Vasilis Tsaprounis Independent Analyst

The single European currency maintains a mild upward trend for the second consecutive day approaching the critical level of 1,18 pending the announcement of United States growth rate and other important macroeconomic data in a stormy agenda.

The recent announcement of 25 basis points interest rates cut by Fed continues to affect the US currency and after the temporary correction the dollar has once again come under pressure, with today being considered critical for the course of the exchange rate in the near future.

The rich agenda combined with the shallow market due to the upcoming Christmas holidays could, in the event of a significant surprise, create an environment for sharp fluctuations.

Although the European currency has returned to the spotlight, it is still maintained within the familiar fluctuation ranges of recent weeks, with 1.20 being the next challenge that would shake up the overall market picture, which so far remains unchanged.

The resurgence of a possible new tension between Israel and Iran does not seem to affect the markets so far, with international stock markets remaining close to historic highs.

Some small corrections that have appeared on the table in international stock prices have partially confirmed some thoughts as expressed in previous articles but have not been of greater extent, something to which I continue to give a good chance.

Today's agenda beyond the growth rate of US economy includes durable goods orders, industrial production, the consumer confidence index.

The recent rise of the European currency cannot be considered a surprise as the exchange rate, as I mentioned above, remains within the known fluctuation range of recent weeks and has not yet broken through any critical levels.

I continue to be unable to discern any specific direction and for this reason I prefer to remain in a wait-and-see attitude, while maintaining the idea of a possible purchase of US currency if the exchange rate approaches the level of 1.20.

Author

Vasilis Tsaprounis

Independent Analyst

Vassilis Tsaprounis possesses over 25 years of professional experience in Capital Markets and especially in the foreign exchange market.

EUR/USD looks sidelined around 1.1850

EUR/USD remains on the back foot, extending its bearish tone and sliding towards the 1.1850 area to print fresh daily lows on Monday. The move lower comes as the US Dollar gathers modest traction, with thin liquidity and subdued volatility amplifying price swings amid the US market holiday.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold loses momentum, eases below $5,000

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.