- EUR/USD consolidates recent losses to poke intraday high.
- ECB rejects rumors over inflation forecasts and rate hike concerns.
- US data renewed Fed tapering concerns, markets await US Michigan Consumer Sentiment details for conviction amid mixed clues.
EUR/USD licks its wounds around 1.1770, up 0.05% intraday while consolidating the previous day’s fall, the heaviest in a month. That said, the US dollar pullback amid an inactive session could be linked to the currency major’s rebound heading into Friday’s European session.
US Dollar Index (DXY) grinds higher around 92.85, steady of late, following that biggest daily jump in since mid-August. The greenback gauge rallied Thursday after the US Retail Sales for August and Philadelphia Fed Manufacturing Index for September renewed Fed tapering concerns. The US Retail Sales MoM jumped to the highest in five months while crossing expectations of -0.8% with +0.7% figures. Further, the Philly Fed gauge also rose strongly to 30.7 versus 19 forecast and 19.4 prior, marking the strongest figures in three months.
Also underpinning the greenback were chatters that the US, the UK and Australia are indirectly challenging China with securities pact and the US hosting of the UK, India, Australia and Japan for diplomatic talks the next week. Additionally, the Sino-American tussles, recently over Taiwan, join the hurricanes that challenge oil firms in the US Gulf to add to the risk-off mood and favor the US dollar’s safe-haven demand. As per the latest updates, the US and Australia issue joint statement showing concerns over the South China Sea claims while conveying readiness to strengthen ties with Taiwan.
On the other hand, the UK Financial Times (FT) news that European Central Bank (ECB) Chief Economic Philip Lane hints at a faster inflation run-up triggered the Euro uptick yesterday but was rejected by the ECB afterward.
Furthermore, a rethink over the Fed’s tapering seems to probe the bears. Reuters’ latest poll of 51 economists pushes back the tapering to the November meeting while citing the inflation concerns. The survey also hints at the Delta covid variant’s downbeat impact on the US Q3 GDP. Additionally, hints that the US stimulus talks are in pipeline and more vaccines are on the way seemed to have underpinned the latest consolidation.
Amid these plays, S&P 500 Futures remain directionless while the US 10-year Treasury yields seesaw near 1.33% by the press time.
The final reading of the Eurozone Consumer Price Index (CPI) for August, expected to confirm a 3.0% YoY forecast, is there on the calendar to offer immediate direction. However, EUR/USD traders will be more interested in the preliminary readings of the US Michigan Consumer Sentiment Index for September, expected 72.2 versus 70.3 prior. Should the consumer-centric data provides a positive surprise, Fed tapering woes may exert additional downside pressure on the EUR/USD prices.
A horizontal area established since July, around 1.1750 questions EUR/USD bears before directing them to early August low near 1.1710 and the yearly low surrounding 1.1665. Alternatively, recovery moves remain doubtful unless crossing the 50-DMA level of 1.1797 on a daily closing basis.
Additional important levels
|Today last price||1.1769|
|Today Daily Change||0.0004|
|Today Daily Change %||0.03%|
|Today daily open||1.1765|
|Previous Daily High||1.1821|
|Previous Daily Low||1.175|
|Previous Weekly High||1.1886|
|Previous Weekly Low||1.1802|
|Previous Monthly High||1.19|
|Previous Monthly Low||1.1664|
|Daily Fibonacci 38.2%||1.1777|
|Daily Fibonacci 61.8%||1.1794|
|Daily Pivot Point S1||1.1737|
|Daily Pivot Point S2||1.1708|
|Daily Pivot Point S3||1.1666|
|Daily Pivot Point R1||1.1807|
|Daily Pivot Point R2||1.1849|
|Daily Pivot Point R3||1.1877|
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.