EUR/USD adds over 30 pips as risk assets gain ground


  • EUR/USD trades at 1.1959 versus 1.1923 in early Asia. 
  • Coronavirus vaccine optimism and buoyant equity markets weigh over the dollar. 
  • Fed's Powell says the US economy remains in a damaged state.

The bid tone around the single currency strengthened on Tuesday, pushing EUR/USD higher, as stock markets gained, weakening safe-havens such as the greenback. 

The pair traded near 1.1959 at the time of writing, representing a 0.30% gain on the day, having found buyers near 1.1923 in Asia. 

Vaccine hopes boost risk appetite

Major Asia indices rose over 1% on prospects of a COVID-19 vaccine. Drugmaker Moderna said Monday that it will apply for the US and European emergency authorization for its COVID-19 vaccine, with full results from its late-stage study showing 94.1% effectiveness with no serious safety concerns. 

Last month, drugmakers Moderna, Pfizer, and AstraZeneca announced positive results of their respective experimental vaccines, putting a strong bid under the risk assets. Since then, a massive wave of liquidity has come into equities, as noted by Reuters, weakening demand for anti-risk assets such as the US dollar. 

The trend looks set to continue, as markets believe the Federal Reserve would boost stimulus to counter the recent resurgence of coronavirus. "Recent news on the vaccine front is very positive for the medium term," Powell said in testimony released Monday while adding that the economy remains in a damaged and uncertain state. 

As such, the EUR/USD pair could have another go at the psychological hurdle of 1.20. The bulls failed to establish a foothold above that level on Monday on month-end dollar demand. 

Data wise, the focus would be on the German labor market report and Eurozone's preliminary Consumer Price Index for November. A big beat on expectations will likely draw more substantial buying pressure for the common currency. 

Technical levels

EUR/USD

Overview
Today last price 1.1958
Today Daily Change 0.0030
Today Daily Change % 0.25
Today daily open 1.1928
 
Trends
Daily SMA20 1.1846
Daily SMA50 1.1785
Daily SMA100 1.1775
Daily SMA200 1.1411
 
Levels
Previous Daily High 1.2003
Previous Daily Low 1.1927
Previous Weekly High 1.1963
Previous Weekly Low 1.18
Previous Monthly High 1.2003
Previous Monthly Low 1.1603
Daily Fibonacci 38.2% 1.1956
Daily Fibonacci 61.8% 1.1974
Daily Pivot Point S1 1.1902
Daily Pivot Point S2 1.1877
Daily Pivot Point S3 1.1826
Daily Pivot Point R1 1.1978
Daily Pivot Point R2 1.2029
Daily Pivot Point R3 1.2054

 

 

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.

Feed news

Stop losing your money! 
Learn to trade with us!

24/7 signals + Webinars    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD eases below 1.1900 as USD rises with yields, US CPI eyed

EUR/USD is trading under pressure below 1.1900, as the US dollar rebounds in tandem with the Treasury yields amid rising inflation expectations. Europe's covid concerns continue to undermine the euro. German ZEW and US CPI awaited. 

EUR/USD News

GBP/USD extends fall after UK GDP misses estiamtes

GBP/USD is trading below 1.3750 after UK GDP figures for February missed with 0.4% and despite Britain's successful vaccination campaign. The currency pair has been under pressure as the dollar strengthens across the board alongside yields. US inflation is eyed.

GBP/USD News

Gold defends 21-DMA support amid USD rebound, US CPI eyed

Gold sees some signs of life amid weaker Treasury yields. The yellow metal fell nearly $11 on Monday, extending its two days of declines, as the Treasury yields reversed course and edged slightly higher following a good three-year note auction.

Gold News

Bitcoin a “caged bull” with little resistance ahead as BTC still in price discovery mode

Bitcoin price continues to struggle to reach a record high above $60,000. However, BTC demand and on-chain data suggest a bullish outlook for the pioneer cryptocurrency. Bloomberg analyst Mike McGlone indicates Bitcoin is in price discovery, far from reaching the cycle top.

Read more

Weekly outlook: Inflation in the spotlight

Inflation and inflation expectations are likely to be in the spotlight in the coming week. We saw a decline in US inflation expectations this week and with that, a decline in bond yields that pressured the dollar.

Read more

Forex MAJORS

Cryptocurrencies

Signatures