EUR/USD remains depressed near 1.1570, FOMC looms closer

EUR/USD keeps the offered stance unchanged around 1.1570.
US ADP report surprised to the upside in October at 571K jobs.
The FOMC event is due later with QE tapering in the centre of the debate.

Pablo Piovano FXStreet

Sellers seem to remain in control of the sentiment around the European currency and force EUR/USD to drop to daily lows near 1.1560 on Wednesday.

EUR/USD weaker on US data, looks to the Fed

EUR/USD now accelerates losses and adds to Tuesday’s bearish price action against the backdrop of further recovery in the greenback as well as the prevailing cautiousness ahead of the FOMC gathering.

Indeed, the buying interest in the dollar improved further after above-estimated results from the US calendar. Actually, the US ADP report showed the US economy added 571K jobs during October, while the ISM Non-Manufacturing rose to 66.7 during last month and headline Factory Orders expanded at a monthly 0.2% in September.

Further upside in the buck also comes in response to the rebound in US yields in the front end and the belly of the curve to 0.50% and 1.57%, respectively.

EUR/USD levels to watch

So far, spot is losing 0.12% at 1.1565 and faces the next up barrier at 1.1689 (55-day SMA) followed by 1.1692 (monthly high Oct.28) and finally 1.1755 (weekly high Sep.22). On the other hand, a break below 1.1535 (weekly low Oct.29) would target 1.1524 (2021 low Oct.12) en route to 1.1495 (monthly low Mar.9 2020).

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.

AUD/USD consolidates above 0.7200 after hot Chinese CPI data

AUD/USD is extending its consolidative price action above 0.7200 during the Asian session on Wednesday, uninspired by hot Chinese CPI and PPI data. Meanwhile, rising RBA rate-hike bets act as a tailwind for the Aussie amid Yen-inspired US Dollar weakness. Traders await the release of US inflation figures later in the week for fresh impetus.

USD/JPY falls toward 153.00 as markets project aggressive BoJ tightening

USD/JPY remains under bearish pressure after falling sharply earlier in the week and closes in on 153.00 on Wednesday. A strong Reuters Tankan business survey adds to the case for continued BoJ policy normalisation and supports the Japanese Yen. This, along with a broadly weaker US Dollar, keeps the pair close to a nearly seven-month low set on Tuesday.

Gold buyers struggle near $4,400 amid Fed rate hike bets, rising Oil prices

Gold (XAU/USD) rebounds on Wednesday, snapping a three-day losing streak, but struggles to extend its recovery. Tit-for-tat attacks between the United States (US) and Iran push Oil prices higher, while a rebound in the US Dollar (USD) keeps the metal below the $4,400 mark after touching a one-week low near $4,341 earlier in the day.

Pi Network's rebound holds as momentum improves

Pi Network (PI) extends its recovery on Wednesday, trading above $0.098 after finding support around the 50-day Exponential Moving Average earlier this week. The rebound comes as the Pi Core Team highlights the importance of strengthening its developer ecosystem to expand application-level utility across the network.

Oil, Apple and JPY in focus

Oil prices are rising on Wednesday as tit-for-tat strikes between Iran and the US threaten oil supplies as the two sides battle for control of the Strait of Hormuz. Stock futures have switched their attention from a strong earnings season to the challenges ahead, including a 10-year Treasury yield that is hovering close to the 4.8% level.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.