EUR/USD loses the grip and prints new YTD low around 1.1430

EUR/USD keeps the offered stance unchanged near 1.1430.
US yields trade in a mixed note following Thursday’s holiday.
US flash Consumer Sentiment next on tap in the docket.

Pablo Piovano FXStreet

EUR/USD extends the weekly bearishness for yet another session and clinches fresh 2021 lows near 1.1430 at the end of the week.

EUR/USD offered on dollar’s rally

EUR/USD navigates levels last traded back in the summer 2020 amidst the relentless march north in the greenback, which pushed the US Dollar Index (DXY) to new cycle peaks in the 95.25/30 band on Friday.

The pair, in the meantime, remains at the mercy of dollar dynamics and it has definitely accelerated the downtrend following the release of US inflation figures during October (Wednesday) and the breakdown of the key 200-week SMA (1.1561). The first event triggering a sharp move higher in the buck along with US yields and speculations of an anticipated lift-off by the Fed.

Back to the calendar, Industrial Production in the broader Euroland came above expectorations after contracting 0.2% inter-month in September, while expanding 5.2% vs. the same month in 2020.

Across the Atlantic, September JOLTs Job Openings and the preliminary Consumer Sentiment for the month of November are due.

EUR/USD levels to watch

So far, spot is down 0.09% at 1.1439 and faces the next up barrier at 1.1583 (20-day SMA) followed by 1.1609 (weekly high November 9) and finally 1.1616 (monthly high Nov.4). On the other hand, a break below 1.1432 (2021 low Nov.12) would target 1.1422 (monthly high Jun.10 2020) en route to 1.1300 (round level).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.