The demand for the single currency remains solid at the end of the wee, now pushing EUR/USD to the upper bound of the range just below the key 1.19 handle.
EUR/USD looks to NFP
The rally in the pair stays unabated for the time being, showing no signs of exhaustion despite its overbought condition, while the continuation of the selling bias around the greenback keeps underpinning the pair’s momentum.
Spread differentials between German and US 10-year yields remain a significant catalyst for the pair’s price action so far other than the already mentioned weakness surrounding USD, with spread points currently trading around 178 bps, near yearly lows.
Looking ahead, the main headwind for the continuation of the EUR-rally comes from the USD-side and the publication of July’s payrolls in the US economy. Consensus expects the economy to have added more than 180K jobs during last month although the other focus of attention will surely be on inflation pressures via wages, a gauge that remains laggard and is critical for the Federal Reserve.
EUR/USD levels to watch
At the moment, the pair is advancing 0.13% at 1.1885 facing the next hurdle at 1.1909 (2017 high Aug.2) seconded by 1.2040 (2012 low Jul.24) and then 1.2166 (50% Fibo of the 2014-2017 drop). On the other hand, a breakdown of 1.1773 (10-day sma) would target 1.1735 (38.2% Fibo of the 2014-2017 drop) en route to 1.1611 (low Jul.26).
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.
Latest Forex News
Editors’ Picks
EUR/USD struggles to extend Tuesday's gain as coronavirus worries return
EUR/USD is flashing red while heading into the London open, marking a weak follow-through to Tuesday's 0.92% rise from 1.08 to 1.0926. The downside in EUR/USD will likely gather pace if the European equities open on a negative note in response to the renewed virus concerns.
GBP/USD: Pressured above 1.2300 amid UK’s coronavirus crisis
GBP/USD fails to hold onto recovery gains amid fresh coronavirus concerns. UK PM is in ICU but stable, doubts over the already higher statistics remain. Expectations are mounting that the UK will have Europe’s worst crisis due to the virus.
Forex Today: Dollar bulls return with coronavirus concerns, eyes on Oil, FOMC minutes
The market mood remained cautious, as the worries over the coronavirus spread returned after the hotspots on both sides of the Atlantic reported a rise in the new cases. The US dollar extended the bounce while Oil prices also staged a solid comeback in Asia.
WTI: On the rise, but still stuck in a bull flag
WTI oil is flashing green in Asia. Even so, the immediate outlook remains neutral as the 4-hour chart shows prices are still trapped in a bull flag, a continuation pattern, which typically accelerates the preceding upward move.
Gold regains $1,650 amid cautious trade sentiment
Gold defies the pullback from the monthly top. While Monday’s coronavirus (COVID-19) data suggested receding fears of the deadly disease, the latest figures keep the risk-off alive. The US FOMC minutes will decorate the economic calendar.