- EUR/USD reverses the recent downside and targets 1.1900.
- German IFO came in above estimates in November.
- US Consumer Confidence, housing sector take centre stage later.
The improved tone in the single currency lifts EUR/USD to fresh daily highs in the 1.1890 region.
EUR/USD looks to 1.1900 and above
EUR/USD manages to reverse two consecutive daily pullbacks and regains upside traction on Tuesday.
The renewed weakness surrounding the greenback sustains the resumption of the upside momentum in spot amidst a broad-based improvement in the risk complex. Rising hopes on an efficient vaccine plus the view of a “V”-shaped recovery continue to lend support to the pair and the rest of its risk-associated peers.
Adding to the euro’s bullish note, the German Business Climate tracked by the IFO survey surpassed estimates at 90.7 in November albeit it came a tad below the October’s reading. Earlier in the session, the German GDP figures showed the economy expanded 8.5% during the July-September period, bettering expectations.
Across the ocean, the Conference Board will publish its Consumer Confidence gauge seconded by the S&P/Case-Shiller Index and the FHFA’s House Price Index. In addition, FOMC’s Bullard, Clarida and Williams are also due to speak.
What to look for around EUR
EUR/USD was rejected from the area just above 1.19 the figure at the beginning of the week. In the very near-term, EUR/USD is expected to remain under scrutiny on the back of the impact of the pandemic on the region’s economy and political developments surrounding the EU Recovery Fund. In addition, the dovish stance from the ECB and the potential announcements of extra stimulus in December also favour the re-emergence of the cautious stance among investors.
EUR/USD levels to watch
At the moment, the pair is gaining 0.35% at 1.1881 and a break above 1.1920 (monthly high Nov.9) would target 1.1965 (monthly high Aug.18) en route to 1.2011 (2020 high Sep.1). On the flip side, immediate contention aligns at 1.1745 (weekly low Nov.11) followed by 1.1709 (Fibo level of the 2017-2018 rally) and finally 1.1602 (monthly low Nov.4).
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.
Recommended content
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.