EUR/USD clings to gains around 1.1020

EUR/USD rebounds to 1.1030 at the beginning of the week.
Investors’ attention stays on US-China headlines.
German ZEW survey in centre stage on Tuesday.

Pablo Piovano FXStreet

After a brief test of daily highs around 1.1030, EUR/USD has now re-shifted its focus to the lower end of the range in the 1.1020 zone.

EUR/USD focused on trade, data

The pair has attempted a recovery to the 1.1030 region earlier in the session, although the bullish move lacked of follow through.

In the meantime, investors remain focused on any headline regarding the US-China ‘Phase One’ deal, particularly after Friday’s comments by President Trump saying there is still no decision on any roll over of existing tariffs.

The down move in spot has been lately fuelled by the moderate recovery in the buck against the backdrop of raising US yields, always following trade news and the persistent sell off in the safe havens.

In the data space, the German Wholesale Price Index contracted at a monthly 0.1% in October and dropped 2.3% from a year earlier. Tomorrow, the key ZEW survey in Germany and the broader euro area will be in the limelight ahead of Thursday’s advanced Q3 GDP figures.

What to look for around EUR

The selling mood in the euro dragged spot to fresh 3-week lows in the 1.1020/15 band, where it is now looking to stabilize. As usual, the firm note in the greenback and developments from the US-China trade scenario are expected to dictate the mood around the pair for the time being. On the macro view, the outlook in Euroland remains fragile and does nothing but justify the ‘looser for longer’ monetary stance by the ECB and the bearish view on the single currency in the medium term at least. In addition, the possibility that the German economy could slip into recession in Q3 remains a palpable risk for the outlook and is expected to weigh further on EUR in the short/medium term horizon.

EUR/USD levels to watch

At the moment, the pair is gaining 0.05% at 1.1022 and faces the next hurdle at 1.1109 (100-day SMA) followed by 1.1179 (monthly high Oct.21) and finally 1.1186 (61.8% Fibo of the 2017-2018 rally). On the downside, a break below 1.1016 (monthly low Nov.11) would target 1.1000 (psychological handle) en route to 1.0925 (low Sep.3).

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 bounces off four-day lows, still below 1.3500

GBP/USD sticks to the bearish tone on Thursday, coming down to the 1.3480 region in the latter part of the NA session. In the meantime, Cable’s weakness comes as investors continue to assess mixed UK data, poor US results, and the persistent uncertainty surrounding the US-Iran conflict.

EUR/USD looks apathetic around 1.1530

EUR/USD reverses Wednesday’s downtick and trades with modest gains in the 1.1530 region following the end of the NA session on Thursday. The pair’s tepid advance comes on the back of the absence of clear direction in the US Dollar despite tensions from the Middle East appear far from alleviated. Later on Friday, investors are expected to monitor the the releases of another revision of GDP figures in the Euroland, US Retail Sales and the preliminary U-Mich gauge.

$4,300 tested as Gold is down on profit-taking, but not out

Gold is testing the $4,300 level as the corrective downside extends into a second day early Friday. Traders remain focused on Middle East developments, Oil price action, and US Federal Reserve interest rate expectations before placing fresh positional bets.

SharpLink to stake $200 million in Ethereum through Lido

SharpLink Gaming announced plans to stake $200 million in Ethereum through Lido as part of its strategy to generate returns from its ETH treasury, according to a Thursday announcement. The allocation will be converted into wrapped staked ETH, which represents staked Ethereum and the associated staking rewards.

Dollar dominance is cracking and the Fort Knox Gold question won’t go away

Imagine somebody repeatedly claiming to have $100,000 in the bank but refusing to produce a statement or even balance the checkbook. The money might be there, but without verification, skepticism would be reasonable.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.