EUR/USD flat-lined around 1.1200 ahead of a Big week

Dhwani Mehta FXStreet

The EUR/USD pair remains better bid heading into Europe, consolidating the recovery from weekly lows of 1.1166, as markets digest reports of Macron's sweeping parliamentary election Round 1 victory.

EUR/USD: ECB out, eyes on FOMC

The spot closed the bullish opening gap, although fails to extend the recovery beyond 1.1200 levels, in the wake of divergent monetary policy outlooks between the ECB and Fed.

Last week, he ECB announced no changes to its monetary policy program, while lowered its inflation forecasts, while the FOMC is set to announce a rate hike this week, which is driving the US yields higher across the curve. Treasury yields rally +0.60% to +1.15% so far this session.

However, the major manages to keep the bid tone intact, as the EUR bulls cheers the reports of new French President Macron having found a strong parliamentary majority. Moreover, risk-aversion continues to haunt markets, with Asian equities largely subdued, boosting the funding currency status of the Euro.

Looking ahead, we have a big week for the EUR/USD pair, with plenty of key risk events from the US, including the CPI, retail sales and industrial production data. Meanwhile, the FOMC decision is expected to be the main market mover, which will shape-up next direction in the buck.

EUR/USD Technical Levels

Franco Shao at Forex Cycle noted: “EURUSD’s fall from 1.1285 extended to as low as 1.1166. Deeper decline is still possible and next target would be at around 1.1130. However, as long as 1.1109 support holds, the fall would possibly be consolidation of the uptrend from 1.0569 (Apr 10 low), another rise towards 1.1450 could be expected after the consolidation. Resistance is at 1.1285, a break of this level could signal resumption of the uptrend.”

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.

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold remains range-bound below $4,200

Gold has given up some ground after an initial bullish attempt to reach weekly highs, returning to below the $4,200 mark per troy ounce on Friday. The US Dollar’s strong upside momentum, combined with rising US Treasury yields across the curve, seems to keep further gains in the yellow metal under scrutiny.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?

The Euro is not the sick man of Europe. France's bond market is

EUR/USD remains under pressure, near the 17-month low of 1.1161 reached on Monday. The pair has lost more than 7% since its yearly peak, as concerns over France's public finances increasingly weigh on the single currency. But behind the weakness of the Euro (EUR), the problem does not necessarily lie with the European economy as a whole.