- EUR/USD remains pressured, fades corrective pullback following the heaviest daily slump in 4.5 months.
- Market sentiment dwindles amid Fed tapering chatters, EU-US peace over steel, aluminum.
- US dollar defends Friday’s jump on firmer Treasury yields.
- German Retail Sales, ISM Manufacturing PMI can entertain traders, Wednesday’s Fed meeting becomes the key.
EUR/USD remains sidelined around 1.1550, following the heaviest daily fall since mid-June, heading into Monday’s European session. Having witnessed the European Central Bank’s (ECB) failed attempt to hide hawkish intentions, the market turns towards the US Federal Reserve (Fed) with high hopes of tapering hints.
Steady prints of the Fed’s preferred inflation gauge, the US Core PCE Price Index, bolstered the tapering concerns on Friday, favoring the US Dollar Index (DXY) to rally the most since the mid-June. That said, the data remained firmer around 3.6%, versus a 3.7% market forecast, for September.
On the other hand, the Eurozone GDP returned to the pre-pandemic levels, +2.2% QoQ, during the Q3 and the October month’s inflation also rose 4.1%, firming up odds of the ECB’s next move to be a rate hike than the otherwise. However, the regional central bank has already played its role and the ECB policymakers have recently been searching for clues to avoid any strong bullish action, which in turn allowed the US Dollar to garner the market’s attention and gain.
Elsewhere, the US joins hands with the European Union (EU) over steel and aluminum tariffs to challenge Beijing’s steel industry whereas US President Joe Biden marked “god willing” to portray optimism concerning the Build Back Better framework.
Amid these plays, US 10-year Treasury yields rise 1.6 basis points (bps) to 1.57% while the US Dollar Index (DXY) stays firmer above 94.00 at the latest.
Looking forward, German Retail Sales for September, expected .8% YoY versus 0.4% prior, will precede the US ISM Manufacturing PMI for October, market forecast 60.4 against 61.1, to entertain short-term traders. However, major attention will be on Wednesday’s Fed verdict with eyes on tapering hints.
The EUR/USD pair’s U-turn from 50-DMA takes clues from the MACD line’s inability to reach the positive region, also tilt southwards before that, to favor the bears. Also signaling the quote’s further weakness is the downside break of three-week-old horizontal support, now resistance around 1.1590.
Additional important levels
|Today last price||1.1554|
|Today Daily Change||-0.0002|
|Today Daily Change %||-0.02%|
|Today daily open||1.1556|
|Previous Daily High||1.1687|
|Previous Daily Low||1.1535|
|Previous Weekly High||1.1692|
|Previous Weekly Low||1.1535|
|Previous Monthly High||1.1692|
|Previous Monthly Low||1.1524|
|Daily Fibonacci 38.2%||1.1593|
|Daily Fibonacci 61.8%||1.1629|
|Daily Pivot Point S1||1.1499|
|Daily Pivot Point S2||1.1441|
|Daily Pivot Point S3||1.1347|
|Daily Pivot Point R1||1.1651|
|Daily Pivot Point R2||1.1745|
|Daily Pivot Point R3||1.1803|
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.