EUR/USD keeps the bearish note near 1.1100


  • EUR/USD stays close to the 1.1100 neighbourhood.
  • The Greenback remains bid above the 98.00 handle.
  • EMU Trade Balance figures only scheduled today.

The selling pressure around the single currency stays unabated so far this week and has dragged EUR/USD to levels below the key support at 1.1100 the figure late on Thursday and today during the Asian trading hours.

EUR/USD offered on USD-buying, ECB

Spot has gathered extra downside traction on Thursday after ECB’s board member O.Rehn said that the upcoming package of stimulus measures could overshoot market expectations. It is worth recalling that the ECB will most likely deliver its new measures at the September meeting.

In addition, the pair suffered further the improved demand for the Greenback in light of somewhat diminishing jitters on the US-China trade front, which has in turn mitigated the sentiment around the ‘flight-to-safety’.

In today’s docket, Trade Balance figures in the euro area for the month of June are only due, whereas the flash print of US Consumer Sentiment will grab all the attention across the Atlantic.

What to look for around EUR

EUR has finally succumbed to the downside pressure and is testing the 1.1100 area and below on the back of shrinking ‘repatriation’ forces and renewed buying interest surrounding the buck. That said, sustained bullish attempts in the pair still look flimsy amidst ECB’s preparations for a fresh wave of monetary stimulus (most likely to be announced in September), including a potential reduction of interest rates, the re-start of the QE programme and a probable tiered deposit rate system. This scenario has been confirmed further this week following poor results from the euro-docket, adding to the unremitting deterioration of the economic outlook in the region. On another front, Italian politics has resurfaced as a source of uncertainty as of late and is expected to weigh on the sentiment sooner rather than later.

EUR/USD levels to watch

At the moment, the pair is losing 0.08% at 1.1098 and faces the next support at 1.1091 (low Aug.15) seconded by 1.1026 (2019 low Aug.1) and finally 1.0839 (monthly low May 11 2017). On the upside, a break above 1.1155 (21-day SMA) would target 1.1230 (55-day SMA) en route to 1.1282 (high Jul.19).

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.

Feed news

Latest Forex News

Editors’ Picks

AUD/USD stays under pressure around 0.6830 while beginning the NFP day

AUD/USD declines to 0.6830 during the initial Friday morning in Asia. The quote stretches losses made on Thursday as the second-tier Aussie data becomes the latest disappointment.

AUD/USD News

USD/JPY resumes decline after faltering around 109.00

The USD/JPY is ending the day with modest losses, as despite encouraging words from US trade representatives, there’s nothing new on a trade deal with China.

USD/JPY News

US Non-Farm Payrolls November Preview: Labor market continues to defy concerns

Non-farm payrolls are predicted to rise 180,000 in Nov following Oct’s 128,000 increase. The unemployment rate is expected to be unchanged at 3.6%. Hourly earnings will gain 0.3% in Nov after October’s 0.2% increase and annual earnings will be stable at 3.0%.

Read more

Gold: Modestly changed to $1475 as markets turn cautious ahead of US NFP

Gold fails to extend the previous day’s recovery while trading near $1475/76 amid Friday’s Asian session. That said, the yellow metal registers failures to close beyond 50-day EMA for the third consecutive day.

Gold News

USD/JPY resumes decline after faltering around 109.00

The USD/JPY is ending the day with modest losses, as despite encouraging words from US trade representatives, there’s nothing new on a trade deal with China.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures