• EUR/USD regains the smile above 1.17000 on Thursday.
  • The dollar retreats from monthly tops above 93.50.
  • Flash PMIs in the core euro area receded further in September.

The single currency finally smiles and now lifts EUR/USD back above the 1.1700 mark on Thursday.

EUR/USD focused on dollar, data

EUR/USD attempts a mild rebound after recording new tops for the month of September earlier on Thursday near 1.1680.

The improvement in the risk complex helps the pair to regain some composure and reverse, albeit partially, the intense leg lower in place since the beginning of the month. In fact, EUR/USD shed nearly 2% since monthly highs past the 1.1900 mark (September 3) to lows recorded during early trade in the 1.1685/80 band.

The pair opened the session on a positive note and quickly surpassed the 1.1700 barrier on Thursday on the back of some profit taking mood hitting the buck as market participants continue to digest Wednesday’s FOMC gathering.

In the euro docket, preliminary readings for Manufacturing/Services PMIs in the core Euroland for the month of September came in below estimates and added to the view of some deceleration in the region.

Data across the pond includes the usual weekly Claims, the Chicago Fed Index, flash PMIs and the CB Leading Index.

What to look for around EUR

EUR/USD dropped and rebounded from lows near 1.1680 in the wake of the FOMC event. The firm sentiment surrounding the dollar is expected to persist for the time being and particularly now that the Committee sees higher rates in 2022 and the QE tapering process is expected to kick in “soon”. The lower-than-expected PMIs in the bloc further suggest that the economic recovery could be stalling, emerging at the same time as another potential source of weakness for the single currency.

Key events in the euro area this week: Flash September PMIs (Thursday) – German IFO (Friday) – German elections (Sunday).

Eminent issues on the back boiler: Asymmetric economic recovery in the region. Sustainability of the pick-up in inflation figures. Progress of the Delta variant of the coronavirus and pace of the vaccination campaign. Probable political effervescence around the EU Recovery Fund. German elections in September could bring some political jitters to the scenario. Investors’ shift to European equities in the wake of the pandemic could lend extra oxygen to the single currency. ECB tapering speculations.

EUR/USD levels to watch

So far, spot is gaining 0.30% at 1.1722 and faces the next up barrier at 1.1790 (55-day SMA) seconded by 1.1845 (weekly high Sep.14) and finally 1.1909 (monthly high Sep.3). On the other hand, a break below 1.1683 (monthly low Sep.23) would target 1.1663 (2021 low Aug.20) en route to 1.1602 (monthly low Nov.4 2020).

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 Join Telegram

Recommended content

Recommended content

Editors’ Picks

AUD/USD extends gains above 0.6900 as USD struggles

AUD/USD extends gains above 0.6900 as USD struggles

AUD/USD is extending the recovery above 0.6900, despite a cautious mood in Asia. The US dollar struggles to find demand amid US-China tension over Taiwan and aggressive Fed tightening bets after Friday's US NFP blowout. 


EUR/USD: Bears moving in across the timeframes

EUR/USD: Bears moving in across the timeframes

The EUR/USD price on the weekly chart has corrected to a 50% mean reversion of the prior weekly sell-off. Last week's sell-off could be the start of the bearish extension. On the daily chart, the price has left behind a failed inverse head and shoulders.


Gold slides towards $1,750 as Fed, Taiwan concerns favor DXY bulls

Gold slides towards $1,750 as Fed, Taiwan concerns favor DXY bulls

Gold price remains pressured near $1,773, down 0.10% intraday, as risk-aversion underpins the US dollar’s safe-haven demand during Monday’s Asian session. Also keeping the greenback buyers hopeful are the recently increased hopes of Fed 0.75% rate hike in September.

Gold News

NZD/USD slips sharply from 0.6260 as RBNZ reports inflation expectations lower at 3.07%

NZD/USD slips sharply from 0.6260 as RBNZ reports inflation expectations lower at 3.07%

NZD/USD has declined to near 0.6240 on lower RBNZ inflation expectations. The RBNZ inflation expectations have declined to 3.07% vs. 3.29% reported earlier. This week, the US Inflation data holds significant importance.


FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!