EUR/USD: Dollar's advantage to show up in the price shortly

EUR/USD has been recovering amid temporary market calm. But, expected strong US figures, stimulus progress and America's vaccine ramp-up are set to boost the greenback, Yohay Elam, an Analyst at FXStreet, reports.

See: EUR/USD to strengthen with vaccine rollout in the second quarter – CIBC

Key quotes

“Economists expect the ISM Services Purchasing Managers' Index to print 58.7 points in February – prolonged growth in America's largest sector. The Manufacturing PMI smashed estimates earlier in the week with 60.8. Ahead of ISM's release, ADP's employment figures are forecast to show an increase of 177,000 private-sector jobs.”

“While the old continent is struggling to get people to take the AstraZeneca jab, the US is ramping up the rollout and also production. Merck agreed to produce Johnson and Johnson's single-shot inoculations and President Joe Biden stated that every American could be offered a vaccine by the end of May.”

“The Senate will begin debating Biden's $1.9 trillion covid relief package on Wednesday. While the president urged lawmakers to leave as much as possible unchanged, some elements such as the minimum wage hike will likely fall out of the legislation passed by the House. Nevertheless, advancing stimulus will likely add propping up the greenback.” 

“Euro/dollar continues suffering from downside momentum on the 4-hour chart and trades below the 50, 100 and 200 Simple Moving Averages – which are all converging around the 1.2110 level. That critical confluence is a make or break point for the pair.”


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

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD on the back foot above 1.1950 amid tepid mood

EUR/USD trades on the back foot above 1.1950, consolidating the corrective pullback. Fears of delay in economic recovery magnified on downbeat vaccine updates, Geopolitical tensions also weigh on sentiment. US Michigan Consumer Sentiment Index in focus.


GBP/USD slips below 1.3750 amid USD bounce, Brexit concerns

GBP/USD remains pressured towards 1.3700, as the US dollar bounces amid a downbeat market mood. Covid vaccine concerns and unresolved Brexit border issues continue to undermine the pound. US Consumer Sentiment data awaited. 


Ripple bulls plan comeback with 30% rally

XRP price could surge 30% after a bounce from an ascending parallel channel’s lower trend line. Resetting social sentiment and funding rates provide a tailwind to the bullish thesis. A bearish scenario could come into play if sellers slice through the channel’s lower boundary at $1.70.

Read more

XAU/USD consolidates in a range just below multi-week tops

Gold was seen oscillating in a narrow trading band through the Asian session on Friday. Rebounding US bond yields underpinned the USD and capped the upside for the metal. Expectations for ultra-low interest rates, inflationary concerns should help limit losses.

Gold News

The pause that refreshes: Are currency markets hesitant to run with US data?

Recent American economic results have been exceptional. Payrolls, Retail Sales, and even Initial Jobless Claims, show recovery in full swing.  But the dollar topped out against the euro and the yen two weeks ago even as US data has blossomed.

Read more