EUR/USD capitalizes on USD selling, advances to 1.1150
- US Dollar Index extends slide toward 97 handle.
- ECB says PMI data point to a moderate recovery in manufacturing.
- Coming up on Monday: Retail Sales data from Germany.
After rising above the 1.1100 mark, the EUR/USD pair continued to push higher and touched its best level in more than a week at 1.1150. As of writing, the pair was trading at 1.1147, adding 0.46% on a daily basis.
USD loses traction on Friday
The data published by the National Bureau of Statistics (NBS) of China on Friday revealed that Industrial Profits rose 5.4% on a yearly basis in November following October's disappointing decline of 9.9%. Combined with heightened hopes of the US-China trade conflict coming to an end, this data provided a boost to the market sentiment and caused the greenback to lose interest.
Additionally, profit-taking and capital flows toward the end of the year seem to be weighing on the USD as well. As of writing, the US Dollar Index, which tracks the buck's value against a basket of six major currencies, was down 0.38% on the day at 97.19.
In the meantime, the European Central Bank (ECB) in its latest Economic Bulletin noted that the latest PMI data pointed to a moderate recovery in the manufacturing output growth. "Global growth has weakened in the first half of 2019 but signs of stabilisation have started to emerge towards the year-end," the ECB further added to help the shared currency preserve its strength.
On Monday, Retail Sales data from Germany will be looked upon for fresh impetus.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
