EUR/USD ending on Wall Street better-bid, close to the highs of the day in the 1.11 handle

  • EUR/USD bulls in control at the start of this week in a risk-postive market place.
  • All eyes will now turn to a number of critical events, including the Fed and Nonfarm Payrolls.

EUR/USD remained elevated on Monday in a positive risk environment as traders picked up on the solid performances in global equities. It has been an otherwise relatively quiet start to what indeed should be an eventful week ahead.

EUR/USD was ending on Wall Street around its highs for the day having travelled from a low of 1.1076 to a high of 1.1106, ending some 0.20% higher on the day. Corporate earnings are a focal point this week with 162 S&P 500 companies due to release quarterly financial results - The S&P 500 index surpassed its previous intraday all-time high which lent support to the euro while the EU granting the UK a Brexit extension until 31 January also helped to bring about some risk appetite. 

As for the data for the day, there was little to go on at the start of the week, with just a 0.3% month-on-month fall in September wholesale inventories undershooting expectations of a 0.2% gain, while from the euro area, we had some mixed messages in money supply coming in slightly below expectations with a5.5% year-on-year rise in M3. Meanwhile, looking head and besides Brexit politics and central banks, this week brings a handful of data releases, including US and euro area Q3 GDP, euro area inflation, various ISM/PMIs, and US non-farm payrolls sure to shake things up for the single currency.

Eyes on the Fed

Commenting on the Federal Open Market Committee, (FOMC), for this week, analysts at TD Securities explained that they are expecting the Fed to lower rates by 25bp, delivering the third consecutive rate cut since July. "The FOMC is likely to communicate patience in deciding future policy moves after next week's cut as they assess the impact of the three cuts they have already delivered. We look for the Fed to temporarily pause before resuming rate cuts in Q1 2020."

EUR/USD levels

From a technical standpoint, the single unit is struggling to get over a 23.6% retracement of its latest bullish run. Valeria Bednarik, the Chief Analyst at FXStreet notes that the 38.2% retracement of the same advance has been providing immediate support at 1.1065, adding:

"In the 4-hour chart, a bearish 20 SMA converges with the mentioned Fibonacci resistance, while technical indicators remain within negative levels, although lacking directional strength. The overall stance is negative, although little should be expected on this first day of the week."

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD advances above 1.14 after unchanged ECB, mixed US data

EUR/USD is trading above 1.14, higher after the ECB left policy unchanged and called governments to act. US retail sales beat with 7.5% while jobless claims disappointed with 1.3 million. US coronavirus figures are showing further increases in cases.


GBP/USD advances above 1.26 amid mostly upbeat US, UK data

GBP/USD is trading above 1.26, higher. The UK jobs reports showed low unemployment but also depressed wages. US retail sales beat expectations but jobless claims remain high. 


Gold trades with modest losses, downside remains limited

Gold witnessed a modest intraday pullback amid a pickup in the USD demand. The prevalent risk-off mood extended some support to the safe-haven metal. A sustained break below $1800 is needed to confirm a bearish break.

Gold News

Why is the crypto market falling today?

War for dominance impacts the market and heralds several days of turbulence. Fight between Bitcoin and Ethereum hurts the Altcoin segment, which is largely overbought after weeks of euphoria. Ripple is the most affected of the Top 3 and steps back into a high-risk environment.

Read more

Oil : The price action seems indecisive at these elevated levels

WTI is still in a bull trend on the chart below but at these elevated levels, it seems the price seems to be very jittery. Previously within this trend when the price moved higher the size of the bullish candles was bigger. 

Oil News