EUR/USD extends the recovery to 1.1340 ahead of data


  • The pair adds to Tuesday’s gains above the 1.1300 handle.
  • EMU Industrial Production figures due later in the day.
  • US January inflation figures next of relevance in the NA session.

Further optimism in the risk complex is helping EUR/USD to extend the rebound from yesterday’s YTD lows in the 1.1260/55 band.

EUR/USD focused on US-China, data

The pair is up for the second session in a row so far today, regaining buying interest in tandem with rising hopes of an agreement at the ongoing US-China trade talks in Beijing.

Collaborating with the upbeat tone in the risk-associated universe, the likelihood of another partial government shutdown has practically evaporated after US lawmakers agreed to provide some funding for Trump’s plans regarding a border wall with Mexico. President Trump is now expected to sign the bill.

Data wise in Euroland, December Industrial Production figures are due next while US inflation figures will be the main event across the ocean.

What to look for around EUR/USD

Both the ECB and European Commission have revised lower their projections for economic growth and inflation in the bloc, acknowledging at the same time that the ongoing slowdown could be longer than initially estimated. Additionally, political concerns remain well and sound following the recent Italy-France dispute with the ‘yellow-vests’ in centre stage ahead of the key EU parliamentary elections in May. Looking at the ECB, and following the current context, market participants seem to have pushed back the probable timing of the start of the tightening cycle by the central bank.

EUR/USD levels to watch

At the moment, the pair is gaining 0.07% at 1.1331 facing the next up barrier at 1.1356 (23.6% Fibo of the September-November drop) seconded by 1.1386 (55-day SMA) and finally 1.1416 (100-day SMA). On the other hand, a break below 1.1257 (2019 low Feb.12) would target 1.1215 (2018 low Nov.12) en route to 1.1118 (monthly low Jun.20 2017).

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 flirts with 1.1100 as the dollar loses steam

The EUR/USD pair bounced from a daily low of 1.1065, as demand for the greenback receded during US trading hours. Upside caped for the shared currency amid fears of a German recession, Italian political turmoil.

EUR/USD News

GBP/USD pressures recent highs amid renewed Brexit hopes

Comments from German Chancellor Merkel gave the Pound a lift, as somehow she hinted that the EU would consider an alternative to the Irish backstop.

GBP/USD News

USD/JPY slides to 106.30 area as US T-bond yields turn south

10-year US Treasury bond yield erases Monday's recovery gains. US Dollar Index preserves strength to limit pair's losses. Risk sentiment is likely to continue to drive pair's action.

USD/JPY News

Gold retreats from daily highs, continues to trade above $1,500

The XAU/USD pair took advantage of the risk-off flows earlier in the day and erased a large portion of the losses it suffered on Monday. After touching a daily high of $1,508.45, however, the precious metal lost its strength and edged lower toward the $1,500 handle. 

Gold News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Planning the next bullish move after consolidating gains

Trading cryptos is not a one-way street – meteoric unstoppable gains belong to the past. Nevertheless, the bullish sentiment seems to prevail. Digital coins advanced on Monday and are consolidating on Tuesday. 

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •