- US dollar softness and upbeat Draghi remains supportive of the Euro.
- US retail sales to arrive at 0.4% m/m vs. 0.5% last in August.
The US dollar ran into to fresh offers in the European session, pushing the EUR/USD higher to print fresh two-week highs at 1.1721. However, the bulls faced exhaustion at the last and sent the rates back to test the 1.1700 level, where it now wavers.
EUR/USD: Eyes on US macro releases.
The spot extends its winning streak into a fifth straight day today and remains on track for the first weekly in three weeks. The positive tone seen around EUR/USD can be mainly attributed to broad-based US dollar weakness, induced by a miss on the US CPI numbers and easing US-Sino trade concerns.
Further, the European Union’s (EU) optimism on reaching a Brexit deal combined with upbeat remarks by the ECB President Draghi on the Eurozone economy also helps keep the buoyant tone intact around the common currency.
However, over the last hour, the pair is seen retreating from two-week tops, as the greenback appears to have found some support across its main peers heading into the key US retail sales release. Meanwhile, downbeat Eurozone trade figures also cap the upside in the EUR.
EUR/USD Technical Levels
According to Slobodan Drvenica at Windsor Brokers, “Thursday’s close above falling 100SMA was bullish signal for final push towards 28 Aug high at 1.1733 and possible extension towards key Fibo barrier at 1.1780 (38.2% of 1.2555/1.1300 fall). Broken 100SMA should ideally hold, but deeper dips cannot be ruled out, with 1.1650 zone (former multiple upside rejections / broken Fibo 61.8% of 1.1733/1.1526 descend) expected to contain and keep bullish bias.”
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 edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.