EUR/USD comes under heavy pressure and breaches 1.0800

EUR/USD adds to Thursday’s losses below the 1.0800 mark.
Flash Manufacturing PMIs in Germany and EMU disappoint in March.
US Durable Goods Orders, advanced PMIs next on tap across the pond.

Pablo Piovano FXStreet

Further selling pressure now drags EUR/USD back below the 1.0800 yardstick, or 2-day lows, at the end of the week.

EUR/USD weaker post-PMIs

EUR/USD extends the pessimism in the second half of the week and retreats from recent monthly peaks north of 1.0900 the figure on the back of the moderate pick-up in the demand for the greenback, while the mixed prints from preliminary PMIs in the euro bloc also collaborate with the corrective daily decline.

On the latter, while the Services sector in the euro area remains healthy, the Manufacturing sector still struggles to find a firmer foot after preliminary readings showed the Manufacturing PMI in Germany and the broader Euroland are expected to have eased to 44.4 (from 46.3) and 47.1 (from 48.5), respectively, during March.

Later in the US data space, Durable Goods Orders for the month of February are due seconded by flash PMIs and the speech by St. Louis Fed J.Bullard.

What to look for around EUR

EUR/USD gathers further downside traction and breaks below the 1.0800 mark on the back of some profit taking mood, the dollar’s recovery and disheartening results from the domestic calendar.

In the meantime, price action around the European currency should continue to closely follow dollar dynamics, as well as the potential next moves from the ECB in a context still dominated by elevated inflation, although amidst dwindling recession risks for the time being.

Key events in the euro area this week: European Council Meeting, EMU, Germany Flash PMIs (Friday).

Eminent issues on the back boiler: Continuation, or not, of the ECB hiking cycle. Impact of the Russia-Ukraine war on the growth prospects and inflation outlook in the region. Risks of inflation becoming entrenched.

EUR/USD levels to watch

So far, the pair is retreating 0.53% at 1.0769 and faces immediate support at 1.0732 (55-day SMA) followed by 1.0614 (100-day SMA) and finally 1.0516 (monthly low March 15). On the upside, a break above 1.0929 (monthly high March 23) would target 1.1032 (2023 high February 2) en route to 1.1100 (round level).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD edges lower below 1.3650, with eyes on US PCE data

GBP/USD trades with a negative bias below 1.3650 in the European session on Wednesday, eroding a part of the previous day's strong gains. The pair, however, remains within striking distance of a six-month top, set last Friday, as traders keenly await the release of the US Personal Consumption Expenditures (PCE) Price Index data for a fresh impetus.

EUR/USD holds lower ground near 1.1650 ahead of key US data

EUR/USD is holding lower ground toward 1.1650 in Wednesday's European session. The US Dollar is recovering modestly amid profit-taking and Middle East uncertainty. US inflation, tracked by the PCE, and another revision of Q2 GDP data should keep investors entertained on Wednesday.

Gold remains depressed below $4,650 on firmer USD; looks to US PCE for Fed rate outlook

Gold sticks to modest losses below $4,650 heading into the European session, though it lacks bearish conviction and remains confined within the previous day's broader range. The US Dollar regains positive traction amid some repositioning ahead of the US Personal Consumption Expenditures Price Index and is seen as weighing on the commodity. Adding to this, Federal Reserve Chair Kevin Warsh's remarks at the Jackson Hole Symposium on Friday might offer more cues about the interest rate path.

Hyperliquid eyes record high on rising revenue, ETF inflows

Hyperliquid (HYPE) is up 4% with bulls aiming to advance last week’s 43% gains to a fresh record high above $83.30. The “Everything Exchange” is gaining institutional and user demand, with Exchange Traded Funds recording daily inflows of over $5 million in each of the last two days, while printing daily revenue of over $2.75 million over the last seven days.

US core PCE inflation set to keep pressure on the Federal Reserve to hike interest rates

The United States Bureau of Economic Analysis is expected to publish the Personal Consumption Expenditures (PCE) Price Index data for July on Wednesday, at 12:30 GMT. PCE inflation data for July is expected to reveal that price pressures remain high, well above the Fed’s 2% target.

Canada hits US goods with tariffs; The rate market sees a problem

On September 8, Canada begins charging its own importers 15%, 25% and 50% on roughly 700 lines of American goods. The measure is billed as dollar for dollar, and on the arithmetic of covered trade it is. What it is not is a tax on the United States.