EUR/USD is holding gains from the previous session after ending Wednesday 0.2% higher. Improved sentiment following the signing of the US – China trade deal (finally!) helped lift the common currency versus the safe haven greenback, however the euro is struggling to push higher after the trade deal left many questions unanswered and lacked any timetable surrounding phase two talks.

EUR/USD traders will now look ahead to a packed calendar of events which could drive movement in the currency pair.

 

ECB Minutes

The minutes from the December ECB meeting are due to be released at 12 GMT. This was Christine Lagarde’s first meeting at the helm, whereby the central bank kept policy unchanged after cutting the overnight rate by 10 basis points in November. Traders will scrutinise the minutes closely for further clues

 

US Retail Sales

US retail sales are expected to show sales increased 0.3% month on month in December, up from 0.2% in the previous month. The US labour market and consumer confidence is solid which could help buoy retail sales.  A strong reading could boost USD.

 

Christine Lagarde

ECB President is due to speak in Frankfurt. Traders will be listening closely for remarks over the health of the eurozone economy. Recent data from German, shows GDP slowed to 0.6% yoy, down from 1.5%. Whilst inflation remains lacklustre at 0.5%. So far, we have not heard too much from Christine Lagarde and how she intends to tackle slowing growth and muted inflation.

 

Levels to watch

EUR/USD gained 0.2% in the previous session. The pair is trading above its 50, 100 and 200 sma on 4-hour chart indicating bullish momentum.

Immediate resistance can be seen at at $1.1164 yesterday’s high will need to be overcome, to advance to resistance at $1.12.

On the flip side, support can be seen around the 50 sma close to $1.1140, prior to Jan 10th low of $1.1085.

Chart

CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed

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 loses 1.1800 amid escalaing US-Sino tensions

EUR/USD dips sub-18 after the US reported an increase of 1.763 million jobs in July, better than estimated but pointing to a deceleration. Escalating Sino-American tensions are boosting the dollar and fiscal talks are eyed. 

EUR/USD News

GBP/USD resumes decline, weighed by UK concerns, US-China conflict

GBP/USD trades at fresh weekly lows below 1.3050 as the dollar got a sudden boost from mounting tensions between the world's two largest economies. UK Chancellor Rishi Sunak said the furlough scheme that is underpinning the economy cannot last forever.

GBP/USD News

XAU/USD drops $50 from record highs to the $2020 area

Gold prices are falling sharply on Friday, trading below $2040/oz at the moment. Earlier on Friday, the yellow metal reached at $2075, a new record high.

Gold News

Bitcoin may extend the recovery once Gold resumes the rally

Gold retreated from the recent highs, but the sentiments are still bullish. Cryptocurrencies resumed the upside, some altcoins are demonstrating strong gains. ETH/BTC stopped the downside correction and settled at $0.03300.

Read more

WTI drops 1% to $41.50 ahead of US NFP, rigs data

WTI (futures on Nymex) is on a steady decline so far this Friday, undermined by reduced demand for higher-yielding assets amid the renewed US-China tensions induced risk-aversion.

Oil News

Forex Majors

Cryptocurrencies

Signatures