EUR/USD climbs to monthly highs beyond 1.10

  • EUR/USD moves to tops above the 1.10 handle.
  • German trade surplus shrunk to €18.1 billion in August.
  • Markets’ focus remains on US CPI, US-China trade.

Another bout of USD-selling is now lifting EUR/USD to fresh monthly highs beyond the critical barrier at 1.10 the figure.

EUR/USD higher on USD weakness

The pair is now picking up extra pace and surpassed the 1.10 handle following the persistent selling bias in the Greenback, which has forced the US Dollar Index to recede to the 98.80 region, or 3-day lows.

The squeeze higher in spot comes despite EuroGroup’s Centeno reiterated that the economic outlook on the region faces increasing risks, particularly from Brexit.

Moving forward, investors will closely follow the developments from the US-China trade talks, expected to resume later today in Washington. Speculations of a deal have been mounting in past hours, particularly after Chinese officials left the door open for some sort of a partial deal.

Data wise today, the German trade surplus shrunk more than expected to €18.1 billion during August, with Exports contracting 1.8% and Imports expanding 0.5%. Across the pond, all the attention will be on the release of inflation figures gauged by the CPI for the month of September.

What to look for around EUR

The pair has finally surpassed the critical juncture at the 1.10 handle amidst the continuation of the correction lower in the US Dollar. Looking at the broader picture, the relentless slowdown in the region does nothing but justify the ‘looser for longer’ monetary stance by the ECB and the bearish view on the single currency for the next months. On another front, potential US tariffs on imports of EU cars remain well on the table, while the Brexit limbo and UK politics also adds to the current negative view.

EUR/USD levels to watch

At the moment, the pair is advancing 0.42% at 1.1017 and faces the next resistance at 1.1055 (55-day SMA) seconded by 1.1109 (monthly high Sep.13) and finally 1.1143 (100-day SMA). On the downside, a breakdown of 1.0958 (10-day SMA) would target 1.0879 (2019 low Oct.1) en route to 1.0839 (monthly low May 11 2017).

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

Latest Forex News

Editors’ Picks

EUR/USD rebounds after dismal US PMIs

EUR/USD is trading closer to 1.0850, rising in response to weak US PMIs, with the services one pointing to contraction. Earlier, German Manufacturing PMI beat estimates. 


GBP/USD advances to 1.2950 after US data

GBP/USD is trading around 1.2950, taking advantage of US weakness stemming from a downfall in Markit's Services PMI in the US. In Britain, the Manufacturing PMI exceeded estimates. 


Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Consolidation process underway

The Crypto board continues to be immersed in an emotional leg-breaking, consistently punishing the emotional state of the traders with its continuous changes of direction.

Read more

XAU/USD unstoppable, breaks to fresh 2020 highs, approaching $1650/oz

XAU/USD is trading in an uptrend above its main daily simple moving averages (SMAs) while breaking above a bull channel. Gold is printing fresh 2020 highs hitting $1646.64 per ounce on an intraday basis.  

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info