EUR/USD Forecast: backed by dollar's weakness, manufacturing growth

Valeria Bednarik FXStreet

The EUR/USD pair trades above 1.1180 for the first time in four days, backed at the beginning of the day by renewed dollar's weakness across the board amid yield's weakness, now advancing on strong preliminary Markit PMIs for June. The figures, however, were mixed with manufacturing up and services down, dragging the composite reading to a five-month low for the whole region, as the situation replicated in Germany and other major economies.

The composite Markit Eurozone PMI fell from a t six-year high of 56.8 in May to a five-month low of 55.7 in June according to flash estimates, while the manufacturing index surged to 57.3 from previous 57.0, whilst the services one was down to 54.7 from 56.3, also the lowest in five months. In the US, the macroeconomic calendar will be busy, with flash PMIs for June, New Home Sales for May and multiple Fed's speakers scheduled to hit the wires.

Get Forex Headlines by Email

The hottest stories of the currency markets in your inbox

From a technical point of view, the short term picture has turned positive, albeit the pair continues trading in slow motion. The 4 hours chart shows that the price continues advancing above its 20 and 200 SMAs, both converging around 1.1150/60, while technical indicators aim north within positive territory. The 100 SMA continues capping the upside around 1.1220, the level to surpass to confirm additional gains ahead, with the next resistances at the 1.1250 region and 1.1300. Below 1.1150, chances will turn towards the downside, with the next support in the 1.1110/20 price zone.

View live chart of the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.