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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD turns down as Trump touts trade hopes, after Lagarde's debut

EUR/USD is trading below 1.1130 after President Trump tweeted that the US is getting close to deal with China. Earlier, the ECB left rates unchanged and President Lagarde acknowledged the recent upturn.


GBP/USD retreats further from nine-month highs, nears 1.3100

GBP/USD has extended its decline amid renewed EUR demand within ECB’s monetary policy announcement. UK elections weigh as polls show a further narrowing in Conservatives’ advantage.


“Brexit as last” will trigger a relief rally even if there is a hung Parliament

Conventional wisdom has it we get a sterling rally if he wins and gets a ruling majority, while getting a hung Parliament means a drop in the pound.

Read more

Gold volatile after ECB, Trump's comments

It has been a rollercoaster day for gold so far on Thursday as the precious metal advanced 1% during the London session, only to give up all the gains and turn to sharp losses later in the day.

Read more

USD/JPY: Greenback jumps to four-day highs as trade tension ease

USD/JPY broke above the 109.00 handle as Trump is upbeat on the trade deal. Resistance is seen at the 109.26 and 109.43 price levels.