EUR/USD pushes higher and flirts with 1.20 ahead of data, Powell

EUR/USD trades closer to the 1.20 barrier on Tuesday.
EMU’s advanced CPI contracted 0.3% MoM in November.
Fed’s Powell, ISM Manufacturing in the limelight later in the NA session.

Pablo Piovano FXStreet

EUR/USD regains buying interest and advances to the boundaries of the psychological barrier at 1.20 the figure on Tuesday.

EUR/USD focused on Fed, data

EUR/USD is once again testing waters near the 1.20 yardstick in the first half of the week, extending the uptrend sparked in early November.

The risk complex continues to benefit from the weaker dollar, always on the back of rising optimism regarding a strong economic recovery in the medium-term. This investors’ view remains underpinned by the development of an effective COVID-19 vaccine in the upcoming months and is fuelled further by the probability of extra US stimulus, likely to be announced in the near-term.

In the euro docket, the German jobless rate ticked lower in November while preliminary inflation figures in the broader euro area see the headline, core CPI contracting at a monthly 0.3% during last month.

Across the pond, Fed’s Powell will testify before the Senate, while the ISM Manufacturing will take centre stage in the NA session seconded by speeches by FOMC’s Brainard, Daly and Evans.

What to look for around EUR

EUR/USD’s rally briefly surpassed the 1.20 mark on Monday and leaves the door open to a potential test of the 2020 highs near 1.2010 (September 1), always against the backdrop of a favourable atmosphere in the risk complex. In the very near-term, EUR/USD appears supported by prospects of a strong recovery in the region along with the increasing likelihood of extra stimulus in the US. Risks to this positive view emerge from the potential political effervescence around the EU Recovery Fund and increasing chances of further ECB easing to be announced as soon as at the December meeting.

EUR/USD levels to watch

At the moment, the pair is gaining 0.52% at 1.1984 and a break above 1.2003 (monthly high Nov.30) would target 1.2011 (2020 high Sep.1) en route to 1.2032 (23.6% Fibo of the 2017-2018 rally). On the flip side, immediate contention emerges at 1.1800 (low Nov.23) followed by 1.1745 (weekly low Nov.11) and finally 1.1709 (Fibo level of the 2017-2018 rally).

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.

EUR/USD rises to 1.1800 neighborhood amid renewed USD selling and trade uncertainties

The EUR/USD pair regains positive traction during the Asian session on Wednesday and jumps to the 1.1800 neighborhood in the last hour, reversing the previous day's modest losses. The intraday move up is sponsored by the emergence of fresh US Dollar, which continues to be weighed down by persistent trade-related uncertainties.

GBP/USD remains stronger above 1.3500 following Trump’s State of the Union

GBP/USD remains in the positive territory for the fourth successive session, trading around 1.3510 during the Asian hours on Wednesday. The pair appreciates as the US Dollar remains subdued following US President Donald Trump’s first State of the Union address of his second administration before a joint session of Congress.

Gold stays firm above $5,150 as Trump's delivers State of the Union speech

Gold finds fresh demand and regains the $5,150 level following the previous day's pullback from the monthly peak as traders assess Trump's State of the Union address. Trade-related uncertainties and geopolitical risks seem to act as a tailwind for the safe-haven bullion.

Bitcoin, Ethereum and Ripple post cautious recovery amid downside risks

Bitcoin, Ethereum, and Ripple are posting a cautious recovery on Wednesday following a market correction earlier this week. BTC is approaching a key breakdown level, while ETH and XRP are rebounding from crucial support levels.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.