- USD pullback amid higher Treasury yields caps EUR/USD’s upside.
- US ADP jobs set to rise, ISM services PMI expected to drop.
- FOMC minutes to highlight concerns over the US-Sino trade row, inflation?
The EUR/USD pair failed several attempts to resist above the 1.17 handle, as the US dollar sell-off stalled versus its main competitors. However, the spot still holds the upside, now consolidating near 1.1685 region ahead of the US ADP jobs release.
The US dollar attempted a minor bounce across the board, mainly driven by rising Treasury yields, as risk sentiment improves amid positive tone seen around the European equities.
Despite the latest leg lower, the major remains well bid and looks to regain the 1.17 barrier, as the common currency continues to derive support from the latest Bloomberg report, citing sources that some ECB members see a rate hike at the end of 2019 as 'too late.'
Further, upbeat Eurozone retail PMI data for the month of June also adds to the EUR’s buoyant tone. Meanwhile, the pair also cheers the optimistic comments by the ECB Chief Economist Praet on the Eurozone inflation outlook.
Attention now turns towards the US ADP employment data and FOMC June meeting minutes for fresh trading impetus ahead of Friday’s tariffs deadline.
EUR/USD Technical Levels:
According to the AceTrader Team, “despite yesterday's intra-day broad sideways swings, as euro's erratic rise from this week's low at 1.1591 (Tuesday) to 1.1682 yesterday suggests early pullback from 1.1697 (Monday) has ended there, consolidation with upside bias remains for gain towards last week's high at 1.1720. On the downside, only below sup area at 1.1621/31 would prolong choppy consolidation until the release of Friday's key U.S. jobs data, however, reckon 1.1591 would remain intact.”
"There’s a decidedly risk-off tone to the markets. Base metals, emerging markets, and high yield corporate bonds haven't moved the needle on market sentiment: negative undertones continue to permeate most asset classes except cryptos which seem to form a near-term base pattern. The fractal similarity between small and large capitalization stocks, and again little discrepancies between consumer discretionary and consumer staples sectors, are all about companies worrying about how tariffs are going to affect their costs. The VIX and the gold/silver ratio both perking up cannot escape the same line of reasoning," Gonçalo Moreira, the technical analyst at FXStreet wrote on Risk On/Off topic page.
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
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales
Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.