- EUR/USD trades on the higher ground amid trade talk extension.
- A light calendar leaves room for trade and Brexit to have their say.
- The technical picture is slightly bullish for the pair.
EUR/USD is trading in the mid 1.1300s, up on the day. The US has agreed to postpone the imposition of new tariffs on China, a move that was planned for March 1st had negotiations not concluded. While there are no final deals, both sides report progress and satisfaction.
China has agreed to maintain a stable yuan and to buy US goods, while structural topics such as intellectual property and the government's intervention in the economy have not seen progress. A meeting between Presidents Donald Trump and Xi Jinping is due in late March in Florida.
The news sent Asian stocks higher and diminished demand for the safe-haven yen and USD, propping up EUR/USD.
Back on Friday, the picture was murkier for the euro. The German IFO Business Climate came out at 98.5 points, a fourth consecutive decline. German Finance Minister Olaf Scholz acknowledged the slowdown, but still sees an upwards trajectory. The flash PMI, published on Thursday, showed signs of bottoming out in the euro-zone economies.
A light calendar awaits traders today with US final wholesale inventories and a speech by Fed Vice Chair Richard Clarida. Clarida also spoke on Friday and failed to move markets.
Brexit remains an issue for broader markets. With 32 left to go, UK PM May is considering another delay to the vote in Parliament, from this week to March 12th, leaving little time for passing all the laws. However, there are reports of a potential delay by two, three, or even 21 months to the UK's departure. A cliff-edge Brexit will be a major disruption also to the euro-zone. At the moment, optimism prevails.
EUR/USD Technical Analysis
-636866806327505631.png)
EUR/USD is trading above the 50 Simple Moving Average on the four-hour chart and but below the 200 one. Momentum is almost non-existent and the Relative Strength Index is balanced. All in all, the pair looks listless.
1.1360 serves as an initial cap, holding euro/dollar down earlier in the day and also last week. 1.1372 was the high point last week. It is followed by 1.1390 and 1.1405 that worked as support lines in late January.
1.1330 was a low point early in the day and provides weak support. 1.1315 was a trough on Friday and also converges with the 50 SMA. 1.1295 was a swing low last week and more significant support awaits at 1.1275 which was a swing low last week.
More: EUR/USD has room to push higher if it moves above this resistance line – Confluence Detector
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 holds above 1.0700 after German inflation data
EUR/USD trades modestly higher on the day above 1.0700. The data from Germany showed that the annual HICP inflation edged higher to 2.4% in April. This reading came in above the market expectation of 2.3% and helped the Euro hold its ground.
USD/JPY recovers above 156.00 following suspected intervention
USD/JPY recovers ground and trades above 156.00 after sliding to 154.50 on what seemed like a Japanese FX intervention. Later this week, Federal Reserve's policy decisions and US employment data could trigger the next big action.
Gold holds steady above $2,330 to start the week
Gold fluctuates in a relatively tight channel above $2,330 on Monday. The benchmark 10-year US Treasury bond yield corrects lower and helps XAU/USD limit its losses ahead of this week's key Fed policy meeting.
Week Ahead: Bitcoin could surprise investors this week Premium
Two main macroeconomic events this week could attempt to sway the crypto markets. Bitcoin (BTC), which showed strength last week, has slipped into a short-term consolidation.
Five Fundamentals for the week: Fed fears, Nonfarm Payrolls, Middle East promise an explosive week Premium
Higher inflation is set to push Fed Chair Powell and his colleagues to a hawkish decision. Nonfarm Payrolls are set to rock markets, but the ISM Services PMI released immediately afterward could steal the show.