- EUR/USD regained the 1.19 handle.
- PMI day ahead.
- US-German yield spread could spike in USD positive manner.
The EUR/USD rose above 1.19 handle and in the process left another higher low on the daily chart as the Eurozone employment and inflation numbers showed the 17-nation currency bloc is moving in the right direction.
Focus on PMIs
Kathy Lien from BK Asset Management writes, " Revisions to November PMIs are due for release on Friday. It is difficult to predict the direction of any revisions but if changes are made, they could have a near-term impact on the euro."
In the US session, all eyes would be on the US Nov. ISM manufacturing figure. It is expected to show the pace of expansion in the activity remained largely unchanged. The bid tone around the USD could strengthen if the details of the ISM index show labor market remains strong. Also, the tax bill uncertainty could cap the downside in the EUR/USD.
US-German yield differential contradicts uptick in EUR/USD
- The 10-year US-German yield differential rose to a one-month high of 203.9 basis points yesterday. The widening of the yield spread in the USD positive manner puts a question market on the sustainability of the EUR/USD rally.
- The spread could witness an upside break (move above 204.2 basis points) if the ISM manufacturing PMI betters estimates.
EUR/USD Technical Levels
FXStreet Chief Analyst Valeria Bednarik writes-
"The price is holding just a handful of pips above a bearish 20 SMA, while technical indicators turned south within positive territory, now nearing their mid-lines. The pair is midway of its weekly range, clearly showing the absence of a defined trend. Whereas above 1.1960 or below 1.1790 the outlook will be more defined, seems the market will wait for December Fed and ECB's monetary policy announcements before choosing a side."
Support levels: 1.1860 1.1820 1.1785
Resistance levels: 1.1930 1.1960 1.2000
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 stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.