- The EUR/USD is having a boost as the USD bull trend is having a pause.
- Mario Draghi, the European Central Bank’s President spoke in Florence and did not refer to monetary policy.
The EUR/USD is trading at around 1.1958 up 0.30% on Friday as the USD is on the back foot amid Draghi’s speech. The President of the European Central Bank spoke in his home country, Italy, and discussed reducing and sharing risk in the euro-zone. He refrained from talking about monetary policy.
In the European session, the single currency tested 1.1890 to find buyers which brought the pair up to 1.1958 in the first part of the American session.
In a speech, earlier on Friday, Fed’s Bullard said “potential for increased business investment could allow faster growth without inflation”, which is a rather dovish comment and could be another reason not to raise rates.
Meanwhile, USD is currently consolidating its three-week advance. Earlier in the week, the US core inflation came slightly below expectations while last Friday, the NFP also came below estimates.
EUR/USD 4-hour chart
-636616411835577383.png)
The medium-term is bearish although bulls have a strong case for a reversal up. Immediate resistance is seen at the 1.1950 psychological level and then at the 1.2000 handle. Support is seen at 1.1910 and at 1.1870 demand levels. The pair is challenging the 50-period simple moving average on the 4-hour chart.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD rebounds from multi-week lows, trades above 1.0750
EUR/USD came under heavy bearish pressure and declined to its weakest level in three weeks below 1.0750 on Friday after the stronger-than-expected Nonfarm Payrolls data. Week-end flows, however, helped the pair erase its daily losses.
GBP/USD remains on track to snap three-week winning streak
GBP/USD recovered toward 1.2550 after coming in within a touching distance of 1.2500 in the second half of the day after Nonfarm Payrolls came in at 199,000 for November. Despite the recent rebound, the pair remains on track to snap a three-week winning streak.
Gold retreats below $2,020 as US yields push higher
Gold broke below its daily range and declined toward $2,010 with the immediate reaction to the upbeat US November jobs report. Although XAU/USD managed to recover toward $2,020, rising US Treasury bond yields triggered another leg lower.
Bitcoin price could retrace to $42,000 if US Nonfarm Payroll comes in at 180,000
Bitcoin price just like other assets, is highly impacted by the macro-financial developments. This includes the Nonfarm Payrolls (NFP) report released by the BLS of the United States.
The week ahead – Fed, ECB and Bank of England rate decisions
When the Federal Reserve kept rates unchanged back in November for the second meeting in a row there was still the distinct possibility that the final meeting of 2023 would provide the possibility of one more rate rise to round off the year in line with Fed policymakers dot plot forecasts of 5.6%.