EUR/USD clings to gains above 1.1300, looks to US data


  • EUR/USD struggles for direction around 1.1300 on Tuesday.
  • German Unemployment Rate ticked lower to 5.2% in December.
  • US ISM Manufacturing next of relevance in the calendar.

The single currency looks to leave behind the pessimism seen at the beginning of the year and now pushes EUR/USD back above the 1.1300 mark, recording modest gains so far on Tuesday.

EUR/USD looks supported around 1.1280

Following Monday’s moderate pullback, EUR/USD attempts to regain some upside traction in response to the lack of direction in the US dollar and the steady performance of yields on both sides of the Atlantic.

The appetite for the risk-associated assets, in the meantime, appears firmer on Tuesday amidst declining concerns around the advance of the omicron strain in spite of the increasing COVID cases around the world. Investors, however, seem to favour the “glass half-full” version and look past the global economic recovery coupled with persistent elevated inflation and the probable normalization of monetary conditions by major central banks later in the year.

In Germany, Retail Sales expanded at a monthly 0.6% in November and contracted 0.2% over the last twelve months. Further data saw the Unemployment Change dropping by 23K people in December and the jobless rate ticking lower to 5.2% in the same period.

Later in the NA session, all the attention will be on the release of the December’s ISM Manufacturing.

What to look for around EUR

EUR/USD met quite decent contention in the 1.1280 region so far this week. As the normal activity resumes in the global markets following the festive period, the pair is seen refocusing on the main driver of the pair’s price action, namely the ECB-Fed policy divergence. In the meantime, the unabated progress of the coronavirus pandemic as well as the fast-spreading omicron variant remain as the exclusive factors to look at when it comes to the economic growth prospects and investors’ morale.

Key events in the euro area this week: German Retail Sales, labour market report (Tuesday) - EMU/Germany Final Services PMIs (Wednesday) - Germany Advanced December Inflation Rate (Thursday) - EMU Advanced December Inflation Rate (Friday).

Eminent issues on the back boiler: Asymmetric economic recovery post-pandemic in the euro area. ECB stance/potential reaction to the persistent elevated inflation in the region. ECB tapering speculation/rate path.

EUR/USD levels to watch

So far, spot is gaining 0.08% at 1.1303 and faces the next up barrier at 1.1386 (monthly high November 30) followed by 1.1464 (weekly high Nov.15) and finally 1.1520 (200-week SMA). On the other hand, a break below 1.1273 (weekly low Dec.29) would target 1.1221 (weekly low Dec.15) en route to 1.1186 (2021 low Nov.24).

Share: Feed news

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


Recommended content

Editors’ Picks

AUD/USD: A tough barrier remains around 0.6800

AUD/USD: A tough barrier remains around 0.6800

AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by50 bps.

AUD/USD News
EUR/USD still targets the 2024 peaks around 1.1200

EUR/USD still targets the 2024 peaks around 1.1200

EUR/USD added to Tuesday’s losses after the post-FOMC rebound in the US Dollar prompted the pair to give away earlier gains to three-week highs in the 1.1185-1.1190 band.

EUR/USD News
Gold surrenders gains and drops to weekly lows near $2,550

Gold surrenders gains and drops to weekly lows near $2,550

Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.

Gold News
Australian Unemployment Rate expected to hold steady at 4.2% in August

Australian Unemployment Rate expected to hold steady at 4.2% in August

The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.

Read more
Ethereum could rally to $2,817 following Fed's 50 bps rate cut

Ethereum could rally to $2,817 following Fed's 50 bps rate cut

Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures