EUR/USD leaps to daily highs past 1.1610, looks to US data

  • EUR/USD leaves behind Monday’s weakness above the 1.1600 yardstick.
  • The greenback falters once again just ahead of the 94.00 barrier.
  • ECB-speak, US Consumer Sentiment next on tap in the docket.

EUR/USD manages to reverse the initial weakness and advances to session tops in the 1.1610/15 band on turnaround Tuesday.

EUR/USD looks to US data, risk trends

EUR/USD bounces off weekly lows near 1.1590 and looks to reverse the pessimism seen at the beginning of the week, all against the backdrop of unclear risk appetite trends and higher US yields.

Indeed, US yields in the belly of the curve regain some traction and flirt with the 1.64% area as opposed by the poor performance of yields in the German 10y Bunds, which recede to the -0.12% area so far on Tuesday.

While the greenback loses ground vs. rivals like the sterling, the yen and the Aussie dollar, it so far manages well to keep daily gains vs. the single currency.

Tuesday’s empty docket in the euro area will likely shift the attention to the participation of ECB Board member A.Enria in a panel discussion later in the European afternoon. The US calendar looks quite interesting following the releases of house prices tracked by the FHFA Index and the S&P/Case-Shiller Index seconded by New Home Sales and the October Consumer Confidence measured by the Conference Board.

What to look for around EUR

The bull run in EUR/USD still remains capped by the 1.1670 region (October 19). While the improvement in the sentiment surrounding the risk complex lent extra wings to the par in past sessions, price action is expected to keep looking to dollar dynamics for the time being, where tapering chatter remains well in centre stage. In the meantime, the idea that elevated inflation could last longer coupled with the loss of momentum in the economic recovery in the region, as per some weakness observed in key fundamentals, are seen pouring cold water over investors’ optimism as well as bullish attempts in the European currency.

Key events in the euro area this week: German GfK Consumer Confidence (Wednesday) – German labour market report, EMU final Consumer Confidence, ECB meeting, German flash CPI (Thursday) – Advanced German Q3 GDP, flash EMU CPI (Friday).

Eminent issues on the back boiler: Asymmetric economic recovery post-pandemic in the region. Sustainability of the pick-up in inflation figures. Probable political effervescence around the EU Recovery Fund in light of the rising conflict between the EU, Poland and Hungary. ECB tapering speculations.

EUR/USD levels to watch

So far, spot is gaining 0.02% at 1.1609 and faces the next up barrier at 1.1669 (monthly high Oct.19) followed by 1.1704 (55-day SMA) and finally 1.1755 (weekly high Sep.22). On the other hand, a break below 1.1590 (weekly low Oct.25) would target 1.1571 (low Oct.18) en route to 1.1524 (2021 low Oct.12).

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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD climbs above 1.1250 as investors eye coronavirus headlines

EUR/USD preserved its recovery momentum early Friday and rose above 1.1250 during the European trading hours. Markets are doubting the Fed's policy tightening prospects as the new coronavirus variant revives concerns over the economic recovery losing steam.


GBP/USD rebounds toward mid-1.3300s on broad dollar weakness

GBP/USD reversed its direction after dipping below 1.3300 earlier in the day and started to push higher toward 1.3350. The greenback is facing heavy selling pressure amid the sharp decline witnessed in the 10-year US Treasury bond yield.


Gold clings to strong gains above $1,800 as US T-bond yields plunge Premium

Gold staged a decisive rebound on Friday and reclaimed $1,800. The intense flight to safety is causing US Treasury bond yields to fall sharply and fueling XAU/USD's rally. Investors await news on vaccines' effectiveness against the new COVID variant.

Gold News

Cardano could tank to $1 if ADA fails to defend crucial support

Cardano price is currently hovering below a freshly shattered 6-hour demand zone, ranging from $1.68 to $1.79. This resulting crash could extend to the immediate and critical foothold at $1.40. 

Read more

Black Friday 2021 Discounts!

Do you want to take your trading skills to the next level? Now you have a chance of leaping forward at attractive introductory rates. For Black Friday, FXStreet is offering discounts of up to 50% on its upgraded Premium plans. 

Subscribe now!