EUR/USD consolidates daily losses, remains comfortable above 1.16

Eren Sengezer FXStreet

The EUR/USD pair renewed its session low at 1.1626 in the last hour and started to consolidate its losses. As of writing, the pair is trading at 1.1637, still losing 0.23% on the day.

The selling pressure seen on the pair on Monday seems to be the product of the greenback's mild recovery. At the moment, the US Dollar Index is at 93.87, up 0.1% on the day. Although today's data are not considered as major market movers, the better-than-expected PMI readings may have provided an additional support for the USD. According to the data released by Markit, preliminary readings for July Manufacturing PMI advanced to 53.2 from 52 in June, beating the market consensus of 52.1. Additionally, the PMI for the service sector remained unchanged at 54.2.

US: Sharpest expansion of US private sector output for six months in July - Markit

On the other hand, existing home sales in the U.S. contracted by 1.8% on a monthly basis in June amid a lack of supply according to the National Association of Realtors.

US: Total existing-home sales decreased 1.8 percent - National Association of Realtors

Nevertheless, today's price action is not convincing enough to assume that the greenback is on the verge of starting a deep correction. Investors remain focused on the political developments in the U.S. Reuters recently reported that Jared Kushner, President Donald Trump's son-in-law, and a senior White House adviser is going to make a statement after his interview with the Senate Intelligence Committee today, possibly bringing some volatility to the markets.

Technical outlook

1.1713 (Aug. 24, 2015, high) remains as the next important for the hurdle. A decisive break above this level could allow the pair to record further gains towards 1.1790 (Jan. 15, 2015, high) and 1.1870 (Jan. 11, 2015, high). On the flip side, 1.1616 (former resistance) could be seen as the first technical support ahead of 1.1500 (psychological level) and 1.1395 (Jul. 12 low).

EUR/USD bullish, 1.1710 stays on the cards – UOB

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.