EUR/USD drops to daily lows near 1.1300, dollar extends gains

EUR/USD slips back to the 1.1300 zone, or new daily lows.
The greenback gains on higher US yields across the curve.
US Manufacturing PMI eased a tad to 57.7 in December.

Pablo Piovano FXStreet

Further improvement in the US dollar keeps the risk appetite subdued and sends EUR/USD to the area of daily lows around 1.1300 at the beginning of the week.

EUR/USD weaker on dollar strength

EUR/USD extends the rejection from recent tops in the 1.1380/90 band and slowly approaches the 1.1300 neighbourhood, where the 20-day SMA also coincides.

The deep knee-jerk in spot came on the back of persistent dollar upside, which is in turn sustained by the move higher in US yields.

Earlier in the euro docket, Markit’s final Manufacturing PMI in Germany came at 57.4 in December and 58.0 in the broader Euroland. Across the pond, the Manufacturing PMI dropped marginally to 57.7 in the same period ahead of November’s Construction Spending.

EUR/USD levels to watch

So far, spot is losing 0.67% at 1.1306 and faces the next up barrier at 1.1386 (monthly high November 30) followed by 1.1464 (weekly high Nov.15) and finally 1.1520 (200-week SMA). On the other hand, a break below 1.1273 (weekly low Dec.29) would target 1.1221 (weekly low Dec.15) en route to 1.1186 (2021 low Nov.24).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.