- The pair struggles for direction near 1.1340.
- The greenback stays sidelined around 96.50.
- German trade surplus widened to €19.4 billion in December.
The recent decline in the single currency is showing some signs of respite today and is helping EUR/USD to keep the trade in the 1.1340 region.
EUR/USD looks to risk trends
After yesterday’s test of fresh lows in the 1.1320 region, spot managed to regain some traction to the current 1.1340 area, although it still remains under pressure amidst alternating risk appetite trends in the global markets.
EUR has practically paid no attention to today’s German data, where December’s trade surplus improved to €19.4 billion, surpassing previous estimates as well.
Adding to the downbeat sentiment around the shared currency, the European Commission has publish its winter forecasts yesterday, where it revised lower its prospects of economic growth for 2019 in both Germany (1.1% from 1.8%) and the broader euro bloc (1.3% from 1.9%). In addition, inflation in the region is now seen at 1.4% during this year (from 1.8%).
What to look for around EUR/USD
The extent and duration of the slowdown in Euroland continues to be in centre stage following recent figures from Q4 GDP in the region, the persistent negative streak from German fundamentals and the recently published EC forecasts for growth and inflation. On the political scenario, May’s EU parliamentary elections should start to gather relevance with the days, paying special attention to the potential advance of populism in the region.
EUR/USD levels to watch
At the moment, the pair is losing 0.03% at 1.1337 and a break below 1.1324 (low Feb.7) would aim for 1.1289 (2019 low Jan.24) en route to 1.1269 (monthly low Dec.14 2018). On the other hand, the next hurdle emerges at 1.1389 (55-day SMA) seconded by 1.1429 (100-day SMA) and finally 1.1442 (38.2% Fibo of the September-November drop).
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
AUD/USD: A tough barrier remains around 0.6800
AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by 50 bps.
NZD/USD advances to near 0.6200 due to risk-on mood, Fed interest rate decision awaited
The NZD/USD pair edges lower to near 0.6200 during the early Asian session on Thursday. The recent GDP data revealed that New Zealand's economy shrank again in the second quarter, suggesting the depths of its economic malaise.
Gold surrenders gains and drops to weekly lows near $2,550
Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.
Australian Unemployment Rate expected to hold steady at 4.2% in August
The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.
Ethereum could rally to $2,817 following Fed's 50 bps rate cut
Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.