EUR/USD: Mildly bid above 1.20 on USD pullback ahead of US ADP, PMI


  • EUR/USD consolidates previous day’s losses amid quiet markets in Asia.
  • Fed’s Kashkari pours cold water on the face of rate hike expectations, initially teased by US Treasury Secretary Yellen.
  • Covid woes escalate in Japan, Canada but fail to overturn vaccine optimism.
  • Eurozone economic forecasts, risk catalysts also eyed ahead of Friday’s jobs report.

EUR/USD refreshes intraday high to 1.2026, up 0.10% on a day, while heading into Wednesday’s European open. In doing so, the currency major pair trims the weekly losses, piled more during the previous day, as the US dollar steps back on the market consolidation.

The US dollar index (DXY) eases 0.11% intraday while S&P 500 Futures rise the most in a week while picking up bids near 4,172, up 0.30% so far during the day.

Behind the moves could be the investor’s cautious optimism ahead of the key US data as well as mixed signals from the US Fed and Treasury officials. It should, however, be noted that the coronavirus (COVID-19) updates from Japan and Canada have been grim of late, not to forget India’s sustained run-up in infections. Alternatively, covid vaccine manufacturers have been flashing risk-positive signals and back hopes of faster economic recovery in the West.

Read: Global Covid news updates: Markets looking elsewhere for a catalyst

After Treasury Secretary Janet Yellen’s U-turn the rate hike signals, Fed Minneapolis President Neel Kashkari flaunts over the Fed’s tool to combat higher inflation, if that’s the case in the future.

On Tuesday, market sentiment worsened as downbeat US data and chatters over the global tax deal joined Yellen’s initial support to the Fed rate hike while weighing on the US Treasury yields. However, off in China and Japan, not to forget pre-NFP cautious sentiment, restricted market moves.

Moving on, Eurozone’s quarterly economic forecasts and second readings of April PMIs may offer intermediate EUR/USD moves before pushing traders to pause for the US ADP Employment Change and ISM Services PMI releases for April

Read: US ISM Services PMI April Preview: Inflation readings remain key as recovery gains strength

While upbeat figures for ADP may keep the US dollar pressured, backing EUR/USD in turn, increasing odds of a negative surprise from ISM figures can recall the greenback buyers. Though major attention will be given to Friday’s monthly jobs report from the US and hence any moves before that may be of little importance.

Technical analysis

Although EUR/USD bulls stay hopeful beyond 1.1995-90 support zone, comprising late April low and early March highs, 100-day SMA guards immediate upside around 1.2050.

Additional important levels

Overview
Today last price 1.2026
Today Daily Change 12 pips
Today Daily Change % 0.10%
Today daily open 1.2014
 
Trends
Daily SMA20 1.2011
Daily SMA50 1.1951
Daily SMA100 1.2053
Daily SMA200 1.1946
 
Levels
Previous Daily High 1.2066
Previous Daily Low 1.1999
Previous Weekly High 1.215
Previous Weekly Low 1.2017
Previous Monthly High 1.215
Previous Monthly Low 1.1713
Daily Fibonacci 38.2% 1.2025
Daily Fibonacci 61.8% 1.204
Daily Pivot Point S1 1.1987
Daily Pivot Point S2 1.1959
Daily Pivot Point S3 1.192
Daily Pivot Point R1 1.2054
Daily Pivot Point R2 1.2093
Daily Pivot Point R3 1.2121

 

 

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