• EUR/USD loses the grip and returns below 1.0300.
  • EMU Industrial Production expanded 2.4% YoY in June.
  • US flash Consumer Sentiment next of note in the docket.

The single currency loses some shine and forces EUR/USD to retreat to the sub-1.0300 region on at the end of the week.

EUR/USD weaker on USD-reovery

EUR/USD gives away part of the recent advance - including fresh multi-week peaks near 1.0370 recorded in the wake of the lower-than-expected US inflation figures (August 10) - on the back of some profit taking in the risk complex along with fresh demand for the greenback.

The move lower in spot comes amidst a mild rebound in the German 10y Bund yields vs. modest losses in their American peers, all against the backdrop of a downbeat mood in the risk complex.

In the docket, Industrial Production in the broader Euroland expanded 2.4% in the year to June, surpassing initial consensus.

Later in the NA session, all the attention is expected to be on the release of the preliminary prints for the U-Mich index for the current month, which gauges the Consumer Sentiment.

What to look for around EUR

EUR/USD recedes from recent 5-week tops near 1.0370, as the greenback looks bid and some investors cash up part of the recent gains in the risk-associated universe.

Price action around the European currency, in the meantime, is expected to closely follow dollar dynamics, geopolitical concerns, fragmentation worries and the Fed-ECB divergence.

On the negatives for the single currency emerges the so far increasing speculation of a potential recession in the region, which looks propped up by dwindling sentiment gauges and the incipient slowdown in some fundamentals.

Key events in the euro area this week: EMU Industrial Production (Friday).

Eminent issues on the back boiler: Continuation of the ECB hiking cycle. Italian elections in late September. Fragmentation risks amidst the ECB’s normalization of monetary conditions. Impact of the war in Ukraine on the region’s growth prospects and inflation.

EUR/USD levels to watch

So far, spot is losing 0.17% at 1.0301 and a break below 1.0096 (weekly low July 26) would target 1.0000 (psychological level) en route to 0.9952 (2022 low July 14). On the other hand, the next up barrier comes at 1.0368 (monthly high August 10) seconded by 1.0523 (100-day SMA) and finally 1.0615 (weekly high June 27).

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD rebounds above 0.9800 on renewed dollar weakness

EUR/USD rebounds above 0.9800 on renewed dollar weakness

EUR/USD has gathered recovery momentum and turned positive on the day above 0.9800 in the American session on Monday. The disappointing ISM Manufacturing PMI from the US weighed heavily on the greenback, providing a boost to the pair.

EUR/USD News

GBP/USD clings to impressive daily gains near 1.1300

GBP/USD clings to impressive daily gains near 1.1300

GBP/USD has extended its daily rally and touched a fresh 10-day high above 1.1300 in the second half of the day on Monday. The UK government's U-turn on the fiscal plan and the broad-based selling pressure surrounding the greenback after PMI data fuel the pair's upside.

GBP/USD News

Gold bulls aim to challenge the $1,700 threshold

Gold bulls aim to challenge the $1,700 threshold

Gold picked up momentum after Wall Street’s opening, and runs above $1,690.00 a troy ounce, trading at its highest in three weeks. The greenback sheds ground on the back of the better performance of equities, coupled with tepid US data.

Gold News

Crypto markets could trap bears soon

Crypto markets could trap bears soon

Bitcoin price seems to be consolidating and forecasts a tiny rally as it approaches the lower limit of the ongoing range tightening. This development could see altcoins, including Ethereum and Ripple, trigger a quick run-up as well.

Read more

TSLA set to fall more as delivery data disappoints

TSLA set to fall more as delivery data disappoints

Tesla (TSLA) looks set to open sharply lower on Monday as the equity market continues to battle raging storms. Last week was a momentous one in currency markets, and those of us in equity land need to keep note of this.

Read more

Forex MAJORS

Cryptocurrencies

Signatures