Euro hovering just shy of 1.20

Kenny Fisher MarketPulse

EUR/USD continues to show limited movement, as it remains just below the symbolic 1.20 level. Currently, the pair is trading at 1.1981, up 0.14% on the day. The euro continues to put pressure on this line, which has held since March 4th.

Inflation in the eurozone remains below the ECB target of around 2%, but pent-up demand after months of lockdowns across western Europe means that inflation is moving higher. Eurozone CPI (YoY) rose 1.3% in March, up from 0.9% a month earlier.

Eurozone growth will be positive in Q1, and the ECB is projecting that GDP gained 1.7% from January-March. Still, a sluggish vaccine rollout in the EU has stunted growth and could weigh on the euro as well. The EU bet on the AstraZeneca vaccine to supply to its residents, and this move has backfired badly, with nagging concerns that the vaccine may be linked to blood clots. On Wednesday, Denmark became the first EU member to ban AstraZeneca vaccines; Germany, France and other EU countries have imposed restrictions on the use of these shots.

In the US, retail sales soared in March, as consumers opened their wallets. Headline retail sales sparkled at 9.8%, while Core Retail Sales rose 8.4%. Both releases easily beat their estimates of 5.8% and 5.1%, respectively. The surge in consumer spending was a result of the latest batch of government stimulus, with US households receiving stimulus cheques of 1400 dollars, as well as many states relaxing health restrictions. US consumers have responded with a spending spree, including the purchase of big-ticket items, such as automobiles.

Somewhat surprisingly, the explosive retail sales release failed to push the US dollar higher, as the currency markets appeared more focused on other matters, such as the vaccine rollout in Germany and France.

EUR/USD technical

EUR faces a critical cap at 1.1990, which is protecting the symbolic 1.20 level. Above, there is resistance at 1.2044.
On the downside, there is support at 1.1860 and 1.1784.

Author

Kenny Fisher

MarketPulse

A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities.

EUR/USD struggles near 1.1850, with all eyes on US CPI data

EUR/USD holds losses while keeping its range near 1.1850 in European trading on Friday. A broadly cautious market environment paired with a steady US Dollar undermines the pair ahead of the critical US CPI data. Meanwhile, the Eurozone Q4 GDP second estimate has little to no impact on the Euro.

GBP/USD recoers above 1.3600, awaits US CPI for fresh impetus

GBP/USD recovers some ground above 1.3600 in the European session on Friday, though it lacks bullish conviction. The US Dollar remains supported amid a softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.