EUR/USD depressed near 1.0830 ahead of EMU data


  • EUR/USD dropped and printed 2020 lows in the 1.0830/25 band.
  • German flash GDP came in flat QoQ in the fourth quarter.
  • US Retail Sales U-Mich index coming up later in the NA session.

After bottoming out (and printing fresh 2020 lows) in the 1.0830/25 band, EUR/USD has managed to regain some poise, trim part of the daily losses and retake the 1.0840 region.

EUR/USD on the defensive post-German data

The pair is now alternating gains with losses after a briefly testing fresh yearly lows in the 1.0830/25 band.

The euro depreciated further vs. the greenback after German advanced GDP figures showed the economy is expected to come in flat during the October-December 2019 period, surprising markets to the downside (once again).

In the meantime, the spot remains well under pressure on the back of the solid pace in the buck and the resurgence of fears around the COVID-19, which has motivated investors to run away from riskier assets and funding currencies.

Later in the session, Q4 GDP figures in the broader Euroland are due along with Employment Change figures during the same period and December’s Trade Balance results.

Across the pond, the focus of attention will be on the advanced Retail Sales for the month of January and the preliminary gauge of the Consumer Sentiment for the current month.

What to look for around EUR

The pair has so far managed to bounce off YTD lows around 1.0830 at the end of the week, although the bearish mood surrounding the European currency remains far from abated. In the meantime, USD-dynamics are expected to dictate the pair’s price action for the time being along with the broad risk trends, where the COVID-19 is still in the centre of the debate. On another front, the ECB is expected to finish its “strategic review” (announced at its January meeting) by year-end, leaving speculations of any change in the monetary policy before that time pretty flat. Further out, latest results from the German and EMU dockets continue to support the view that any attempt of recovery in the region remains elusive for the time being and is expected to keep weighing on the currency.

 

EUR/USD levels to watch

At the moment, the pair is advancing 0.03% at 1.0842 and faces the initial hurdle at 1.0957 (weekly high Feb.10) seconded by 1.1001 (21-day SMA) and finally 1.1072 (55-day SMA). On the downside, a breach of 1.0827 (weekly/2020 low Feb.14) would target 1.0814 (78.6% Fibo of the 2017-2018 rally) en route to 1.0569 (monthly low Apr.10 2017).

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD falls below 1.1850 as US consumer sentiment beats

EUR/USD is trading under1.1850, off the previous levels as US consumer sentiment beat estimates with 78.9 points. The Fed refrained from adding more stimulus, supporting the dollar earlier in the week. Investors are eyeing fiscal stimulus talks.

EUR/USD News

GBP/USD falls as the EU reportedly objects Johnson's bill

GBP/USD is trading around 1.2950, off the highs. According to reports, the EU remains opposed to UK PM Johnson's controversial bill, which violates the Brexit accord. 

GBP/USD News

XAU/USD struggles to move back above 100-hour SMA

Gold regained some positive traction on the last trading day of the week and recovered a part of the previous day's losses to over one-week lows. The commodity held on to its intraday gains and traded above the $1950 level through the mid-European session.

Gold News

Ethereum hits Bitcoin's bid to lead the market

Bitcoin risks dominance after the strong rise of Ethereum. Technical indicators show some significant discrepancies keeping the stress on the board. Sentiment levels are improving and bordering on optimism.

Read more

WTI: Clings to 50-DMA above $41, focus on Friday’s close

WTI (futures on Nymex) consolidates the three-winning streak above $41 mark on Friday, as the bulls await a fresh catalyst for the next push higher.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures