- EUR/USD remains pressured as the US dollar holds Friday’s gains amid a quiet session.
- US Treasury Secretary Yellen pushes for Biden’s plan, Kaplan takes the lead to discuss tapering.
- Sluggish markets amid off in China, Japan await German Retail Sales for March.
- US PMIs for the last month, jitters surrounding Russia, China will also be the key.
EUR/USD sellers attack intraday low of 1.2018 ahead of Monday’s European session open. In doing so, the currency major pair fades the early Asian bounce off a one-week low as the US dollar extends Friday’s run-up.
Although holidays in China and Japan restrict market moves, comments from US Treasury Secretary Janet Yellen and Secretary of State Antony Blinken, not to forget Dallas Fed President Robert Kaplan, helps the US dollar index (DXY) to remain strong around 91.30, the highest since April 22.
While US Treasury Secretary Yellen terms Biden’s plan as much needed while pushing for his tax hike, Secretary of State Blinken shows readiness to keep a tab on China. Further, Fed’s Kaplan becomes the first among the policymakers to show readiness to discuss the tapering.
Not only from the US but New Zealand and the UK also convey concerns over Beijing while Russia and Iran are among others flashing the geopolitical risks.
Elsewhere, the covid woes are strong in Asia but markets stay hopeful as global helps reach India.
Against this backdrop, S&P 500 Futures print 0.30% intraday gains even as off in Asia’s key markets limit the activity.
Moving on, Germany’s Retail Sales for March, expected to recover from -9.0% to -3.1%, will be the immediate catalyst to watch for the EUR/USD traders. Although the figures are likely to recover, the data disappointment will have a larger reaction than otherwise. Following that US PMIs for April and risk catalysts will be crucial for the EUR/USD pair trader to watch.
Read: US Purchasing Managers’ Index April Manufacturing Preview: Let the good times roll
Technical analysis
Only if the EUR/USD crosses the 100-day SMA level of 1.2052 on a daily closing, the bulls can retake control. Alternatively, sellers keep their eyes on a horizontal area surrounding 1.1990 that comprises multiple levels marked since March 11.
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.