EURUSD

The euro fell to its lowest levels against the dollar since April of 2017 in early trading on Friday. The European single currency has been pressured by lackluster eurozone economic data while the US dollar has been lifted by its safe haven appeal as fears over the coronavirus persist.

On Friday, authorities in China reported 5,090 new coronavirus cases and 121 new deaths in the previous 24 hours. The latest official data indicates that in China over 63,000 people have been infected and at least 1,380 people have died. Meanwhile, a senior administration official told CNBC that the US does “not have high confidence in the information coming out of China” on the figures relating to coronavirus cases. Both the US dollar and Japanese yen were boosted by their safe haven status.

At the same time, weakness in eurozone data weighed on the euro this week. Figures released on Wednesday showed that euro-area industrial production fell by 2.1%, the most in almost 4 years. In addition, German GDP came in weaker than expected on Friday and reflected that the German economy stagnated at the end of 2019.

The disappointing eurozone figures contrast with recent positive US data. The US employment report last week showed that 225K new jobs were created and that the unemployment rate ticked up slightly to 3.6%. The New York Federal Reserve announced on Thursday that it will cut back the repo support it is providing in the overnight lending markets. Investors now turn their attention to today’s US retail sales report.

Looking at the EUR/USD monthly chart we can see that price has been in a steady downtrend since 2008 and that a major long term downward channel has formed. Bears begin to eye the prior low of 104.58, representing a potential major level of support.

Any reviews, news, research, analysis, prices or other information contained in this article is provided as general market commentary, does not constitute investment advice and may undergo changes from time to time. Trading the Financial and Currency Markets on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as to your favor. Before entering trading Financial and Currency Markets, you should carefully consider your investment objectives, level of experience and risk appetite. There is a possibility that you could sustain a loss of some or more of your initial investment and therefore you should not invest money which you cannot afford to lose. You should be aware of all the risks associated with Financial and Currency Markets trading, and in case you have any doubt, rather seek advice from an independent financial advisor. Scandinavian Capital Markets AB, its owners, employees, agents or affiliates do not give investment advice, therefore Scandinavian Capital Markets AB assumes no liability for any loss or damage, including without limitation to, any loss of profit, which may be suffered directly or indirectly from use of or reliance on such information. Scandinavian Capital Markets AB strongly encourages consultation with a licensed representative or financial advisor regarding any particular investment or use of any investment strategy.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD bounces off the lows as the market mood improves

EUR/USD is bouncing toward 1.18, recovering from the fall triggered by upbeat US jobs figures and escalating Sino-American tensions. Investors are eyeing the fiscal stimulus impasse in Washington after Trump's executive order and the market mood has somewhat improved.

EUR/USD News

GBP/USD recovering toward 1.31 as the dollar weakens

GBP/USD has recovered toward 1.31 as the dollar pares early gains amid the impasse in Washington over new fiscal stimulus. A survey showing that a third of UK employers may lay off workers is weighing on the pound.

GBP/USD News

XAU/USD retreats to $2030 after making a run to $2050

Gold prices spiked to the upside after the beginning of the American session but then pulled back erasing gains. XAU/USD jumped to $2049.70/oz, and as of writing, it trades at $2033, practically at the same level it closed on Friday.

Gold News

It is time for King Bitcoin

The crypto board starts the week stuck on critical levels. The war for dominance has been favorable to Ethereum for weeks, and the graphics seem to indicate that it's now Bitcoin's turn to win a few battles.

Read more

WTI: $42.30 is the level to beat for the bulls

WTI (futures on Nymex) climbed nearly 1.50% in a bid to test the $42 mark on Monday, in the wake of the upbeat outlook painted by Saudi Aramco’s CEO Nasser and expectations that Iraq will cut output in August.

Oil News

Forex Majors

Cryptocurrencies

Signatures