The euro rose today even after the market received relatively weak economic data from Europe. Data from Eurostat showed that the EU economy grew at the lowest pace in seven years. The single currency zone rose by just 0.1% in the fourth quarter. This was in line with expectations and lower than the previous quarter’s 0.3%. This growth was less than the US 0.5% growth in the quarter. Meanwhile, employment rates in the EU increased by 0.3% in the euro area and 0.2% in EU27. On trade, the euro area exported goods worth more than €186.1 billion. This was 4.8% higher than the €177.5 billion that was exported in the same quarter in 2018. This led to a €23.1 billion surplus with the rest of the world. 

US stock futures rose today as the market seemed to ignore negative news from China. The number of coronavirus cases continued to rise. Officials from China reported 5,090 new cases and 121 deaths in the past 24 hours. 1,700 medical workers have been infected by the disease. The number of people who have been infected is more than 64k while the number of those who have died is more than 1,400. At the same time, companies have continued to warn about implications from the disease. Kirin, a Japanese brewer said that there will be considerable damage from the virus. HSBC announced that some staff will be required to stay at home for more two weeks. Alibaba also warned of potential risks associated with the disease.

The US dollar was little moved today as the market reacted to inflation numbers that were released yesterday. Data from the Bureau of Labour Statistics (BLS) showed that the headline CPI rose by 0.1% in January. This was slightly lower than December’s 0.2% gain. This was the smallest gain in four months. Consumer prices rose by 2.5% in the past 12 months. This was higher than the previous 2.3%. Core CPI which excludes volatile food and energy prices rose by 0.2% after rising by 0.1% in December. It rose by 2.3% in the past 12 months. Meanwhile, initial jobless claims increased by 205k in the past week. This was slightly higher than the 203k recorded in the previous week.

 

EUR/USD

The EUR/USD pair moved upwards slightly even as we received relatively weak economic data from Europe. The pair is trading at 1.0840, which is slightly above this week’s low of 1.0826. This price is still near the lowest level since 2017. The RSI has emerged from the oversold level of 24 to 42. The short and medium-term moving averages appear to be making a bullish crossover. The pair may reverse this week’s losses in the coming week.

 

XBR/USD

The XBR/USD pair rose today as traders ignored the risks of coronavirus. The pair has been moving upwards this week. It has risen from a low of 53.18 to today’s high of 57.15. The price is above the 14-day and 28-day exponential moving averages. The average moving directional index, which was moving downwards previously, rose to 30. The momentum indicator has remained above 100. The pair may continue moving higher during the American session.

 

AUD/NZD

The AUD/NZD pair declined slightly today. The pair has moved from 1.0396 to a high of 1.0453 in the past two days. As shown on the chart below, the pair has formed an equidistant channel on the hourly chart. It is at the lower side of the channel today. The price is along the 38.2% Fibonacci Retracement level. At this stage, the pair may resume the upward trend to test the previous resistance level of 1.0453. It may also move lower past the current support.

 

General Risk Warning for FX & CFD Trading. FX & CFDs are leveraged products. Trading in FX & CFDs related to foreign exchange, commodities, financial indices and other underlying variables, carry a high level of risk and can result in the loss of all of your investment. As such, FX & CFDs may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with FX & CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to FX or CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever.

Analysis feed

FXStreet Trading Signals now available!

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


Latest Forex Analysis

Editors’ Picks

AUD/USD holds the higher ground above 0.6050, focus shifts to US NFP

AUD/USD trades better bid above 0.6050 following upbeat Aussie retail sales data and Chinese Caixin Services PMI. Coronavirus numbers continue rising, keeping markets risk-averse and US dollar broadly underpinned ahead of US NFP. 

AUD/USD News

USD/JPY holding form following spike in oil markets

USD/JPY is relatively bid in Asia despite the risk-off tones circulating which would usually keep the yen underpinned. The spot rallied on solid US stocks and a spike in oil prices overnight.

USD/JPY News

US Non-Farm Payrolls preview: If it’s terrible, it’s expected, if it’s not, April will be

Non-farm payrolls for March will show some of the damage though less than the claims numbers as many of the layoffs did not begin until the latter part of the month.

Read more

WTI consolidates recent gains amid fresh challenges to risk-tone

Even if US President Donald Trump reiterated his calls for oil production cuts, WTI remains under pressure around $23.75 amid the Asian session on Friday. The black gold fails to cheer the upbeat signals from the US leader amid risk reset.

Oil News

Gold snaps two-day recovery, stays above $1,600, as trade sentiment sours

Gold fails to extend the previous recovery gains amid fresh challenges to risk. Wuhan Chief cited coronavirus resurgence risk, Washington Governor extends lockdown. S&P keeps US rating/outlook intact, expects a recovery in 2021.

Gold News

Forex Majors

Cryptocurrencies

Signatures