EUR/USD gathers itself for another push from 1.16 ahead of EU PMIs

The Euro is shifting toward's the week's highs as the Dollar takes a breather.
Eurozone PMIs for Friday will be the day's mid-tier data event, coming in early for a morning showing.

Joshua Gibson FXStreet

The EUR/USD is trading close to Thursday's close heading into Friday's European market session, which brings a dose of mid-tier PMI figures due early to kick off the week's end.

The Euro managed to reverse the early week's losses against the US Dollar, lifting back toward's Tuesday's highs near 1.1645. The Greenback walked back on Thursday as Treasury yields declined for the trading day, taking the USD to the downside alongside them.

Friday sees Markit PMIs for the Eurozone, starting off with France at 07:00 GMT, with the Markit Composite PMI expected to come in at 54.2, in line with the previous figure. The important measures for the day will be German and EU-wide PMIs, with the German Markit Composite PMI at 07:30 GMT (forecast 53.4, previous 53.4), while the EU's PMI Composite will drop at 08:00 GMT, expected to tick downwards slightly, forecast to come in at 53.9 versus the previous reading of 54.1.

Next week will be bringing the next round of Consumer Price Index (CPI) figures for the European Union, and Euro traders will be looking forward to the reading, which last printed at 1.9% in April.

EUR/USD levels to watch

Further downside is still very much a real risk for the Euro, and as FXStreet Chief Analyst Valeria Bednarik noted, "technically, the pair is not yet out of the woods despite the latest recovery to the current 1.1600 region, but the fact that it bounced strongly from the yearly low may suggest that the upward corrective movement could continue, exacerbated by profit-taking ahead of the weekend. In the 4 hour chart, the pair settled above a horizontal 20 SMA, some 20 pips above the indicator for the first time in almost two weeks. Technical indicators in the mentioned chart have entered positive territory, maintaining their upward momentum, with the RSI partially losing its upward strength but at around 55, indicating persistent buying interest. The weekly high at 1.1644 is the key resistance level to surpass to favor an upward continuation during the upcoming session up to 1.1720, a Fibonacci resistance."

Support levels: 1.1550 1.1510 1.1460

Resistance levels: 1.1645 1.1680 1.1720

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.