EUR/USD recedes from tops beyond 1.1160 on EMU data

EUR/USD clinched weekly highs above 1.1160.
EMU flash CPI at 1.1% YoY in July, Q2 GDP at 1.1% YoY.
US ADP report, Fed meeting next of relevance.

Pablo Piovano FXStreet

After moving beyond 1.1160 in early trade, EUR/USD has quickly given away those gains and it has now returned to the 1.1150/40 band, always within a tight range ahead of the FOMC meeting.

EUR/USD cautious ahead of Fed

Spot is now reversing the positive start of the week after meeting strong resistance in the vicinity of the 10-day SMA, currently at 1.1171.

EUR saw its gains trimmed after advanced headline inflation figures in the region is seen gaining 1.1% on a year to July, while prices stripping food and energy costs are expected to gain 0.9% from a year earlier.

Further data in the bloc now see the economy expanding at a quarterly 0.2% during the April-June period and 1.1% on a yearly basis. The jobless rate ticked lower to 7.5% (from 7.6%).

Moving forward, the pair is seen extending the consolidative theme within the familiar range ahead of the US ADP report and the critical FOMC event later in the NA session.

What to look for around EUR

The single currency is expected to remain under scrutiny in the next weeks amidst ECB’s preparations for a fresh wave of monetary stimulus, including a potential reduction of interest rates, the re-start of the QE programme and a probable tiered deposit rate system. The ECB has already changed its forward guidance and it now expects rates to remain at ‘present or lower levels’ until at least mid-2020. The unremitting deterioration of the economic outlook in the region and the lack of traction in inflation are seen limiting any occasional bullish attempts in EUR for the time being and also give extra sustain to the dovish stance in the ECB.

EUR/USD levels to watch

At the moment, the pair is retreating 0.08% at 1.1146 and faces the next support at 1.1101 (2019 low Jul.25) seconded by 1.1021 (high May 8 2017) and finally 1.0839 (monthly low May 11 2017). On the other hand, a break above 1.1233 (55-day SMA) would target 1.1286 (high Jul.11) en route to 1.1302 (200-day SMA).

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 holds losses below 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot below 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand and reports that ECB President Lagarde will step down before the end of her term. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.