- EUR/USD pushes higher and trades closer to the 1.1300 handle.
- EMU Producer Prices disappointed expectations during May.
- US ADP, ISM Non-manufacturing next of significance later in the day.
The optimism around the European currency stays everything but abated today and is lifting EUR/USD to fresh tops in the boundaries of the 1.1290 level.
EUR/USD remains firm and closer to 1.1300
Spot keeps the needle-like recovery well in place so far on Wednesday and is now trading at shouting distance from the critical barrier at 1.1300 the figure, always amidst the continuation of the sell off in the greenback.
As usual since last Friday, speculations around the likelihood of a rate cut by the Fed at some point later this year remain on the rise and keep weighing on the buck, forcing the US Dollar Index to break below the critical 97.00 support for the first time since mid-April.
Data wise in Euroland, Producer Prices rose less than expected at an annualized 2.6% during last month and contracted 0.3% inter-month. Further data in the region saw Retail Sales contracting at a monthly 0.4% during April and expanding 1.5% from a year earlier. Previously, final services PMIs in Germany and the euro area surprised to the upside.
Across the ocean, ADP will report on the performance of the job creation in the US private sector ahead of the release of the ISM Non-manufacturing, the EIA weekly publication on crude oil supplies and the Fed’s Beige Book.
What to look for around EUR
Lower-than-expected preliminary inflation figures in Euroland, albeit anticipated, showed the absence of conviction in the previous up tick in consumer prices and opens the door at the same time for a potential dovish tilt at the ECB event on Thursday. On the broader picture, the broad-based risk-appetite trends and USD-dynamics should dictate the sentiment surrounding the European currency for the time being, all in combination with developments from the trade front including the US, China, the EU and Mexico. On the political front, Italian politics has resurfaced as a source of uncertainty and volatility, with the centre of the debate on the country’s opposition to EU fiscal rules.
EUR/USD levels to watch
At the moment, the pair is advancing 0.24% at 1.1278 and a breakout of 1.1288 (high Jun.5) would target 1.1323 (high Apr.13) en route to 1.1343 (200-week SMA). On the other hand, the next down barrier lines up at 1.1217 (55-day SMA) followed by 1.1190 (21-day SMA) and finally 1.1116 (low May 30).
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD loses recovery momentum after testing 1.0200
EUR/USD has lost its momentum after having climbed toward 1.0200 during the European trading hours on Wednesday. As investors wait for the FOMC to release the minutes of its July meeting, the dollar consolidates its daily gains, allowing the pair to hold above 1.0150.
GBP/USD retreats to 1.2050 area ahead of FOMC Minutes
GBP/USD has reversed its direction after having recovered toward 1.2100 in the second half of the day on Wednesday and retreated toward 1.2050. The risk-averse market environment makes it difficult for the pair to gain traction as focus shifts to FOMC Minutes.
Gold pushes lower toward $1,760 as US yields extend rally
Gold continues to decline toward $1,760 during the American trading hours on Wednesday. Before the FOMC releases the July meeting minutes, the benchmark 10-year US Treasury bond yield is up more than 3% on the day above 2.9%, weighing heavily on XAU/USD.
Will the FOMC minutes make or break Bitcoin’s uptrend?
Ahead of the FOMC minutes release Bitcoin withdrawal from exchanges continued. Proponents expect the market to react to signs Fed members will continue with more aggressive interest rate hikes, increasing the pressure on Bitcoin price.
FXStreet Premium users exceed expectations
_XtraSmall.png)
Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!