• The market sentiment is upbeat weighs on US T-bond yields and the greenback.
  • Eurozone inflation rose by 3.4%, above the ECB’s target, 
  • US ISM Manufacturing PMI shows expansion in the overall economy, according to the ISM.

The EUR/USD is trimming losses, trading at 1.1596, barely up 0.13% during the day at the time of writing.  As the New York session progresses, the market sentiment has improved. The four US major stock indices are recording gains between 0.68% and 1.72%. On the other hand, renewed optimism late during the American session struck the US T-bond yields, with the 10-year benchmark note coupon losing more than a half percent, sitting at 1.472%, for the first time since Monday. 

The US Dollar Index, which tracks the US dollar performance against six peers, is recording losses for the second consecutive day, is down 0.23%, clinging to 94.04, exerting upward pressure on the EUR/USD pair.

Eurozone Consumer Price Index rose above 3.4%

In the Eurozone economic docket, the September Consumer Price Index readings were released. The Core Consumer Price Index rose by 1.9% as expected, whereas the Consumer Price index jumped above 3.3%, foreseen by economists, came at 3.4%. 

US ISM Manufacturing PMI expanded the most in four months

Across the pond, the Institute for Supply Management released the PMI for September. The reading rose to 61.1, better than the 59.6 expected by analysts. According to the report, the reading indicates “expansion in the overall economy for the 16th month in a row after the contraction in April 2020.” 

In the meantime, the University of Michigan Consumer Confidence edged slightly higher to 72.8 more than 71 foreseen. The report shows that American people are somewhat more optimistic about current economic conditions.

The favorite Fed’s reading for inflation, the Personal Consumption Expenditure Index for August, increased by 3.6% on an annual basis, a tenth higher of the expectations. 

For the next week, the European economic docket will feature on Wednesday the Retail Sales on an annual and a monthly basis, expected at 0.4% and 0.8%, respectively.

On the other hand, investors will look for the US ISM Services PMI  for September will be released on Tuesday. Further, on Wednesday, the ADP Employment for September could prelude how the Nonfarm Payrolls reading could be once it is released on Friday.

KEY ADDITIONAL LEVELS TO WATCH

EUR/USD

Overview
Today last price 1.1596
Today Daily Change 0.0015
Today Daily Change % 0.13
Today daily open 1.1581
 
Trends
Daily SMA20 1.1756
Daily SMA50 1.1775
Daily SMA100 1.1891
Daily SMA200 1.1968
 
Levels
Previous Daily High 1.161
Previous Daily Low 1.1563
Previous Weekly High 1.1756
Previous Weekly Low 1.1684
Previous Monthly High 1.1909
Previous Monthly Low 1.1563
Daily Fibonacci 38.2% 1.1581
Daily Fibonacci 61.8% 1.1592
Daily Pivot Point S1 1.1559
Daily Pivot Point S2 1.1537
Daily Pivot Point S3 1.1512
Daily Pivot Point R1 1.1606
Daily Pivot Point R2 1.1631
Daily Pivot Point R3 1.1653

 

 

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