EUR/USD drops below 1.0700 after Yellen, US data

Ani Salama FXStreet

EUR/USD came under mild pressure and make fresh daily lows as the greenback strengthened on the back of Fed’s Yellen testimony and better-than-expected US data.

While Yellen said Thursday that an increase in interest rates “could well become appropriate relatively soon”, data released minute later helped the case. US consumer price index rose 0.4% in October and 1.6% YoY, versus 0.3% and 1.6% expected respectively. The core CPI rose 0.1% MoM and 2.1% YoY. Separated data showed housing starts rose 25.5% to a 9-year high of 1.323 million in October.

EUR/USD pulled back from a daily high of 1.0745 and dipped below the 1.07 mark to hit a marginal daily low of 1.0680 in recent dealings. At time of writing, the pair was trading at 1.0687, virtually unchanged on the day.

EUR/USD levels to watch

As for technical levels, next supports are seen at 1.0665 (Nov 16 low), 1.0550 (Dec 2 2015 low) and 1.0500 (Dec 3 2015 low/psychological level). On the flip side, immediate resistances could be found at 1.0759 (Nov 16 high), 1.0850 (Oct 25 low) and 1.0868 (10-day SMA).

To learn more about this topic, check our video analysis:

EURUSD from Tip TV Productions on Vimeo.

Author

Ani Salama

FXStreet

Ani Salama is an Economist specialized in financial markets and statistics analysis. In 2010, she joined FXstreet where she now contributes with the news section.

EUR/USD holds firm above 1.1900 as US NFP looms

EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.

GBP/USD recovers losses despite rising UK political risks, BoE rate cut bets

Pound Sterling advances against the US Dollar after registering modest losses in the previous session, trading around 1.3650 during the Asian hours on Wednesday. The pair could extend losses as the Pound Sterling faces pressure from rising political risks in the UK and growing expectations of near-term Bank of England rate cuts.

Gold sticks to gains near $5,050 as focus shifts to US NFP

Gold holds moderate gains near the $5,050 level in the European session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal ahead of the critical US NFP release.

US Nonfarm Payrolls expected to show modest job gains in January

The United States Bureau of Labor Statistics will release the delayed Nonfarm Payrolls data for January on Wednesday at 13:30 GMT. Investors expect NFP to rise by 70K following the 50K increase recorded in December.

S&P 500 at 7,000 is a valuation test, not a liquidity problem

The rebound from last week’s drawdown never quite shook the sense that it was being supported by borrowed conviction. The S&P 500 once again tested near the 7,000 level (6,986 as the high watermark) and failed, despite a macro backdrop that would normally be interpreted as supportive of risk.

BNB prolonged correction signals deeper bearish momentum

BNB (BNB), formerly known as Binance Coin, is trading below $618 on Wednesday, marking the sixth consecutive day of correction since the weekend. The bearish price action is further supported by rising short bets alongside negative funding rates in the derivatives market.