EUR/USD fails once again above 1.1600, US PPI eyed

On the back foot ahead of ECB’s staff projections, trade woes.
Upbeat US PPI data could knock-off EUR/USD to 1.1550 level.

Dhwani Mehta FXStreet

The EUR/USD pair extends its choppy trend into the European session, unable to sustain the bounce once again above the 1.16 handle, as the bulls remain unnerved ahead of the ECB’s monetary policy meeting due tomorrow.

EUR/USD: All eyes on trade and ECB

Persistent demand for the US dollar amid looming US-China trade concerns and uncertainty over the trade talks between the US and Canada continues to keep the EUR/USD pair under pressure so far this Wednesday, with every upside attempt sold-off just ahead of the 1.1600 level.

The subdued trading seen in the spot is also driven by increased cautiousness heading into the European Central Bank (ECB) monetary policy meeting due tomorrow. According to the latest Bloomberg headlines, the ECB is likely to make downward revisions to the economic growth forecasts at its policy meeting.

On the other hand, stronger US fundamentals reinforced the Fed’s tightening plans and kept the sentiment around the buck somewhat buoyed. Looking ahead, attention now turns towards the US PPI data, which is likely to add to the USD strength, as a bigger-than-expected drop in the Eurozone industrial figures weighed further on the common currency. Eurozone July industrial production arrived at-0.8% versus -0.5% m/m expected.

EUR/USD Technical Levels

According to Slobodan Drvenica at Windsor Brokers, “upside potential exists and is supported by rising bullish momentum, with 30SMA required to hold. Break above 55SMA would generate an initial bullish signal, with break and close above thin daily cloud (spanned between 1.1649 and 1.1678 and is turning lower on Thursday) and falling 100SMA (1.1685), is needed to open way for attack at key barriers at 1.1733/50 (28 Aug high/late Aug lower platform). Alternatively, a bearish signal could be expected on close below 30SMA, which would unmask 1.1526 (10Sep low) and open way for further retracement of 1.1300/1.1733 ascend. Res: 1.1612; 1.1644; 1.1659; 1.1685. Sup: 1.1570; 1.1557; 1.1526; 1.1466.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD back to 1.3250, down modestly for the day

GBP/USD now comes under fresh downside pressure and recedes toward the mid-1.3200s on Tuesday, partially reversing the optimism seen at the beginning of the week. Meanwhile, Cable’s bearish tone follows the resumption of the upside traction in the Greenback, always amid the sharp rally in USD/JPY.

EUR/USD looks inconclusive in the low 1.1400s

EUR/USD alternates gains with losses in the 1.1420 region in the latter part of the NA session on turnaround Tuesday. The pair’s vacillating price action comes amid the lack of clear direction in the US Dollar. Meanwhile, market participants are expected to gear up for the upcoming key releases on the US docket and developments from the ECB Forum in Sintra.

Gold seems vulnerable around $4,000 amid a bullish USD

Gold trades with a mild negative bias around $4,000 following the previous day's two-way price swings as the US Dollar stands firm amid safe-haven demand, bolstered by uncertainty surrounding US-Iran talks. Meanwhile, Tuesday's strong labor market data reaffirmed bets for a Fed rate hike in 2026 . This further underpins the buck and keeps the non-yielding bullion close to the YTD trough set the previous day.

Ethereum: Sharplink makes first treasury purchase in 2026 amid ETH's fall from grace

Ethereum treasury firm Sharplink resumed accumulation of the second-largest cryptocurrency by market capitalization last week after months on the sidelines. The Florida-based firm acquired 10,000 ETH last week at an average price of $1,611 per ETH, marking its first purchase since October. The move has pushed its holdings to 886,725 ETH worth roughly $1.4 billion at the time of writing.

Why a hawkish Bank of Japan could trigger the next Bitcoin sell-off

The Japanese Yen hits a 40-year low of 162.00 against the US Dollar, raising concerns about intervention or additional rate hikes by the Bank of Japan. BoJ may sell US Treasuries to buy back Yen, potentially pushing US bond yields higher and making Bitcoin less attractive to investors.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.