EUR/USD remains pressured around 1.2000 amid cautious mood
- EUR/USD remains vulnerable ahead of fresh US data.
- Macroeconomic divergence weighs on the euro.
- DXY bounce amid worsening mood adds to the bearish bias.
EUR/USD is pressuring the downside around 1.2000, looking to test two-week lows of 1.1986, as the US dollar has caught a fresh bid-wave amid worsening market mood.
A fresh wave of risk-aversion gripped Asia after China’s state planner announced that the government has decided to put an end to the strategic alliance with Australia, as the ties deteriorate. Asian stocks ex-Japan tumbled while the S&P 500 futures erased gains, lifting the safe-haven appeal of the US dollar.
The spot continues to remain offered, despite weaker US ADP and ISM Services PMI and dovish expectations, as the US economy is still seen on a faster recovery path than the Old Continent amid higher vaccination rates in America.
Despite the weakness in the major, the subdued price action in the US Treasury yields keeps the euro bulls somewhat hopeful heading into a data-busy day ahead.
“On Thursday, Germany will publish March Factory Orders, while the EU will release March Retail Sales, seen up by 1.5% MoM. The focus during US trading hours will be put on employment-related data, as the country will publish Q1 Nonfarm Productivity and Labor Costs and Initial Jobless Claims for the week ended April 30, foreseen at 540K,” FXStreet’s Chief Analyst, Valeria Bednarik, notes.
Additionally, ECB President Christine Lagarde’s speech will be also closely followed for fresh trading impetus.
EUR/USD technical levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
