EUR/USD fighting back from 1.23 ahead of EU PMIs for Tuesday

The Euro reclaims the 1.2300 handle against the USD following Monday's risk flight, but further upside remains tightly contested.
EU Markit PMIs could inspire traders in either direction early in the European session.

Joshua Gibson FXStreet

The EUR/USD is recovering from Monday's selloff in the US session where it hit a bottom at 1.2282, and the pair is currently trading back above the 1.2300 handle ahead of the European markets.

Monday was a thin affair volume-wise with the European markets dark for the extended Easter Monday holiday, and the US session responded to China's retaliatory tariffs with a risk flight that took the top off of most risk assets including the EUR/USD. Markets have recovered and the European session will be opening into NFP week with a range of Markit PMIs to look forward to.

Europe sees an array of macro data early in Tuesday's action, kicking off with German Retail Sales at 06:00 GMT, and the month-on-month figure is expected at 0.8 percent, a noted upswing from the previous period's -0.7 percent contraction. After that is Markit Manufacturing PMIs for Spain, Italy, France, and Germany from 07:15 GMT to 07:55 GMT, with the Eurozone Markit PMI dropping at 08:00 GMT, which is expected at 56.6 for March, an identical reading to February's report.

On the US side the FOMC's members Kashkari and Brainard will be speaking at separate events, with Kashkari speaking at 13:30 GMT and Brainard at 20:30, where traders will be hoping for some talk of monetary policy to gauge how hawkish members of the Fed are.

EUR/USD Levels to consider

The EUR/USD is struggling to find bullish momentum, and as FXStreet's own Pablo Piovano noted, "a break above 1.2477 (high Mar.27) would target 1.2537 (high Jan.25) en route to 1.2557 (2018 high Feb.16). On the other hand, immediate contention emerges at 1.2282 (low Mar.29) followed by 1.2241 (low Mar.21) and finally 1.2206 (low Feb.9)."

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

AUD/USD rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

Gold looks vacillating above $4,150

Gold alternates gains with losses below the key $4,200 mark per troy ounce on Friday. The yellow metal’s irresolute price action comes in response to a modest pullback in the US Dollar and a tepid recovery in US Treasury yields across the board.

Bitcoin steadies at $82,000: The five forces crushing the Uptober rally

Crypto markets have remained under pressure so far in October, with Bitcoin (BTC) sliding below $80,000 earlier this week before recovering to around $82,000 on Friday, as macroeconomic headwinds and cooling demand weigh on the market.

The Fed just got a second hot inflation number. Here's what the diesel signal is really saying

The Federal Reserve (Fed) faces a renewed inflation challenge after two consecutive reports showed price pressure intensifying across the US economy. September's Consumer Price Index (CPI) confirmed accelerating consumer inflation, while the Producer Price Index (PPI) revealed an even sharper rise in business costs. Behind both reports lies a common factor: energy prices.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.