- EUR/USD trades on the defensive in the 1.1080/75 band.
- The dollar picks up pace and approaches YTD highs.
- French Business Survey ticked higher to 100 in January.
The offered bias remains well and sound around the single currency so far on Wednesday, with EUR/USD inching lower o the 1.1080/75 band following the opening bell in Euroland.
EUR/USD focused on risk trends, data
The pair is losing ground for the second session in a row on Wednesday and is flirting with the area of yearly lows in the 1.1080/75 band, always on the back of some mild recovery in the greenback.
In the broader scenario, investors keep paying attention to the risk-appetite trends, developments from the Chinese outbreak of the Wuhan coronavirus and upcoming negotiations of the US-China’s ‘Phase 2’ trade deal.
Data wise in Euroland, the French Business Survey improved to 100 in January, although it came in a tad below estimates (101 exp.). Later in the session, Italy will publish results from the industrial sector. Across the pond, weekly Mortgage Applications are due seconded by the Chicago Fed Activity index, Existing Home Sales and the API’s report on US crude oil supplies.
What to look for around EUR
The pair remains under pressure near yearly lows in the 1.1080 region, always looking to USD-dynamics as the almost exclusive driver for the price action. In the meantime, markets’ attention has now shifted to a more data-dependent stance while the US-China trade front remains muted for the time being. On the more macro view, the slowdown in the region remains far from abated despite some positive results as of late in Germany and the euro area and continues to justify the ‘looser for longer’ monetary stance from the ECB, which is expected to maintain the current ‘wait-and-see’ stance, at least in the near-term, as per the recently published minutes (Accounts) from the December meeting.
EUR/USD levels to watch
At the moment, the pair is losing 0.04% at 1.1077 and a breakdown of 1.1075 (weekly/2020 low Jan.22) would target 1.1067 (100-day SMA) en route to 1.1039 (low Dec.6 2019). On the flip side, the next hurdle emerges at 1.1133 (200-day SMA) followed by 1.1172 (weekly high Jan.16) and finally 1.1186 (61.8% of the 2017-2018 rally).
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.
Recommended content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
GBP/USD consolidates above 1.2500, eyes on US PCE data
GBP/USD fluctuates at around 1.2500 in the European session on Friday following the three-day rebound. The PCE inflation data for March will be watched closely by market participants later in the day.
Gold clings to modest daily gains at around $2,350
Gold stays in positive territory at around $2,350 after closing in positive territory on Thursday. The benchmark 10-year US Treasury bond yield edges lower ahead of US PCE Price Index data, allowing XAU/USD to stretch higher.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.