EUR/USD continues gains, looking to 1.2500 ahead of EZ CPI


Share:
  • EUR/USD up in Asia, looks to extend gains 
  • Euro bulls not ready to give up following last week's challenge of the 1.2500 handle

EUR/USD continues to gather steam on the current bull trend, with the broad dollar index continuing to fall away under President Donald Trump's administration, and preliminary inflation data for the EZ continuing to show promise.

European markets continue to show a willingness to continue Asia market sentiment, with downside risks for the EUR/USD diminishing as European economic data, while not always hitting the mark and coming in soft, is rarely disappointing traders looking to bid up the European currency bloc.

Plenty of economic data is on the docket for the Euro session today, with German Retail Sales, Swiss Consumption Indicator, French EU-normalised CPI, and German Unemployment data all coming out between 7 and 9 am GMT. An hour later, CPI inflation data for the Eurozone will publish, where Euro bulls will be hoping to find enough indications of future economic growth to keep the ball rolling uphill.

As noted by the Welss Fargo Research Team, "CPI inflation fell significantly from 2012-2015, causing the ECB to cut policy rates and implement a quantitative easing (QE) program. As inflation slowly begins to pick up and growth remains solid, the Governing Council is now tasked with ending its QE program and eventually beginning to hike rates. We look for the ECB to gradually begin to raise rates in H1-2019 by first hiking its deposit rate, while keeping the overnight interbank rate and two-week refinancing rate unchanged. In the midst of a slow path toward policy normalization, our currency strategy team looks for the euro to appreciate against the dollar as the greenback weakens over the coming quarters and the ECB gradually begins to tighten. Although growth is increasingly broadbased, we also acknowledge several risks to our outlook, including political uncertainties in Germany and Italy or the potential for another sovereign debt crisis like the one seen in 2010-2012. That said, we see these risks as largely manageable at present, and look for real GDP to increase 2.2 percent in 2018 and 2.0 percent in 2019."

EUR/USD Technicals

FXStreet's own Valeria Bednarik, Chief Analyst, comments: "The pair has managed to recover above the 23.6% retracement of its previous three week's rally at 1.2390 but trades too close to it to confirm an upcoming steeper recovery. Furthermore, and in the 4 hours chart, the pair is struggling around a bearish 20 SMA, while the Momentum indicator lost its upward strength right below its mid-line, as the RSI also hovers within neutral territory, currently at 52. The pair bottomed twice this week around 1.2335, making of the level the immediate support ahead of 1.2300, the 38.2% retracement of the mentioned advance."

 

Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD bounces back, trades above 1.0860

EUR/USD bounces back, trades above 1.0860

EUR/USD bounced from a fresh weekly low of 1.0827, as the US Dollar lost steam following a weak ISM Manufacturing PMI report and words from Federal Reserve Chair Jerome Powell. Powell reiterated its hawkish message, dismissing potential rate cuts in the near future. 

EUR/USD News

GBP/USD turns north ahead of the weekly close, approaches 1.2700

GBP/USD turns north ahead of the weekly close, approaches 1.2700

GBP/USD extended its rebound from near 1.2600 and is approaching 1.2700 on the back of a weaker US Dollar. The Greenback accelerated to the downside following comments from Fed’s Powell. 

GBP/USD News

Gold resumes advance and approaches record highs

Gold resumes advance and approaches record highs

Gold remains near record highs and achieved its highest monthly close ever in November. Global bond yields continue to decline as inflation further cools, supporting the upside in XAU/USD. With central banks expected to remain on hold, the focus will be US labor market data. 

Gold News

Solana likely to extend gains as DeFi airdrop season could boost user base

Solana likely to extend gains as DeFi airdrop season could boost user base

Solana ecosystem will see airdrops from projects like Jupiter, Marginfi, Drift, Zeta and Jito. Solana users are projected to increase between 30% and 80% from native token launches, according to Messari’s latest report.  SOL price extends rally, yielding nearly 4% daily gains. 

Read more

Tesla Stock News: Cybertruck excitement fails to sustain TSLA price as chart signals more downside

Tesla Stock News: Cybertruck excitement fails to sustain TSLA price as chart signals more downside

TSLA stock sinks three days in a row despite Cybertruck unveiling. Analysts conclude that Cybertruck will find it difficult to turn a profit. TSLA stock is the midst of forming a bearish Three Black Crows pattern on the daily chart.

Read more

Forex MAJORS

Cryptocurrencies

Signatures