- EUR/USD climbed to daily highs in the 1.1030/35 band.
- German Retail Sales contracted 3.3% MoM in December.
- EMU flash CPI, Q4 GDP next of relevance.
After moving to the 1.1030/35 band, or daily highs, EUR/USD appears to have met some sellers and is now giving away part of those earlier gains.
EUR/USD looks to data, coronavirus
The pair is eroding part of Thursday’s advance despite the broad-based improvement in the sentiment surrounding the risk-associated universe, particularly following auspicious US Q4 GDP figures and after the World Health Organization (WHO) declared the coronavirus a “global health emergency” on Thursday.
In the meantime, fear on the fast-spreading coronavirus look somewhat mitigated albeit far from abated and are expected to keep weighing on investors’ sentiment at least in the near-term.
Interesting session in the euro docket on Friday, as advanced inflation figures in the broader Euroland as well as preliminary estimates of the Q4 GDP in the region are due later in the day. Earlier, German Retail Sales came in (very) short of expectations after contracting at a monthly 3.3% during December.
Across the pond, inflation figures measured by the PCE will be in centre stage seconded by the final print of the U-Mich index and the Chicago PMI.
What to look for around EUR
The pair remains under pressure although it has so far managed to regain the 1.10 mark and above after bottoming out in the 1.0990 region. In the meantime, dynamics around the buck are expected to remain the exclusive driver of the pair’s price action for the time being along with alternating risk appetite trends in response to developments from the Wuhan coronavirus. On another scenario, the ECB is expected to finish its strategic review (announced last Thursday) by year-end, leaving speculations of any change of the monetary policy before that time pretty flat. Further out, some better-than-expected results in the euro region as of late seem to have lent support to the idea that the bloc could have left the worst behind, although that view looks premature, to say the least.
EUR/USD levels to watch
At the moment, the pair is retreating 0.05% at 1.1025 and a breach of 1.0992 (weekly/2020 low Jan.29) would target 1.0981 (monthly low Nov.29 2019) en route to 1.0925 (low Sep.3 2019). On the flip side, the next resistance comes at 1.1039 (weekly high Jan.30) followed by 1.1067 (100-day SMA) and finally 1.1089 (55-day SMA).
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 regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.