EUR/USD consolidates above 1.16, awaits fresh leads

EUR/USD is trading in a sideways manner above 1.16, is looking to re-enter pennant pattern.
Light economic calendar and the calm in the Italian bond markets is helping the EUR hold above 1.16.

Omkar Godbole FXStreet Contributor

The EUR/USD is holding above 1.16, despite having faced rejection at the pennant hurdle (lower end now acting as resistance) on Wednesday.

At press time, the pair is trading at 1.1615 and the lower end of the pennant is located at 1.1626.

The pennant breakdown and the sharp rise in the spread between the 10-year Italian bond yield and the 10-year German bund yield witnessed last week had put the bears in a commanding position.

However, the common currency has defied gravity this week, possibly due to the calm in the bond markets. For instance, the Italy-German yield spread now stands at 247 basis points vs Friday's high of 253 basis points.

As for today, the currency pair could continue to trade above 1.16 on lack of first tier data releases in the Eurozone and US. The absence of fresh news on Italy could keep the bond markets calm and the EUR better bid above 1.16.

If the Italy-German yield spread spikes, then the EUR will likely fall back below 1.16.

EUR/USD Technical Levels

Resistance: 1.1626 (pennant resistance), 1.1667 (50-day MA), 1.1747 (July 31 high)

Support: 1.1601 (session low), 1.1573 (previous day's low), 1.1530 (last week's low)

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold surrenders some gains, back below $5,000

Gold is giving away part of its earlier gains on Thursday, receding to the sub-$5,000 region per troy ounce. The precious metal is finding support from renewed geopolitical tensions in the Middle East and declining US Treasury yields across the curve in a context of further advance in the Greenback.

XRP edges lower as SG-FORGE integrates EUR stablecoin on XRP Ledger

Ripple’s (XRP) outlook remains weak, as headwinds spark declines toward the $1.40 psychological support at the time of writing on Thursday.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.