EUR/USD flirting with session highs post-US data

Pablo Piovano FXStreet

The upbeat tone around EUR/USD stays unchanged following today’s releases in the US docket, currently challenging daily highs near 1.1920.

EUR/USD supported near 1.1860

The pair has advanced around 50 pips so far today after bottoming out in the 1.1860 area following the FOMC meeting on Wednesday.

However, the ‘buy-the-dips’ stance seems to still prevail among traders, while spot appears to need a stronger catalyst for a deeper pullback and should likely come from the ECB rather than the Fed.

The pair remains within the range after initial claims bettered expectations at 259K WoW, taking the 4-week average to 268.75K from 262.75K. In addition, the Philly Fed manufacturing index surprised to the upside at 23.8 for the current month, ticking higher from August’s 18.9.

Later in the session, ECB’s Mario Draghi is expected to speak ahead of the consumer confidence tracked by the European Commission.

EUR/USD levels to watch

At the moment, the pair is gaining 0.14% at 1.1911 facing the initial resistance at 1.1928 (21-day sma) followed by 1.1941 (10-day sma) and finally 1.2024 (high Sep.20). On the other hand, a breakdown of 1.1862 (low Sep.20) would target 1.1837 (low Sep.14) en route to 1.1773 (55-day sma).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold jumps above $5,000 as China's gold buying drives demand

Gold price rises to near $5,035 during the early Asian session on Monday. The precious metal extends its recovery amid a weaker US Dollar and rising demand from central banks. The delayed release of the US employment report for January will be in the spotlight later on Wednesday.

Week ahead: US NFP and CPI data to shake Fed cut bets, Japan election looms

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.