- The pair remains parked below the 1.1300 handle so far today.
- US-China trade talks will continue next week in Washington.
- US Empire State Index, Industrial Production next of relevance.
The lack of traction around the European currency has confined EUR/USD to trade in the lower bound of the weekly range so far today in the 1.1280/70 band.
EUR/USD now looks to US data
Spot is losing ground for the second week in a row so far today, relegated to the sub-1.1300 area despite the recent bout of optimism in the US-China trade talks, which are set to resume next week in Washington.
Adding to the sour sentiment in EUR, Lega Nord’s advisor and eurosceptic C.Borghi said the upcoming EU parliamentary elections are an opportunity to change Europe, adding that Italy might be forced to leave the euro bloc depending on the final results.
Moving forward, all eyes will be on the publication of US Industrial Production figures, Capacity Utilization, Empire State index and the advanced U-Mich gauge.
What to look for around EUR
The offered bias in the shared currency remains well and sound this week in spite of some progress made in the US-China trade talks and agreement to resume negotiations next week. The slowdown in the euro bloc keeps weighing on sentiment so far, adding to the ongoing speculations that the ECB could refrain from acting on rates this year and extend further, instead, the current ‘pause-mode’. In addition, political concerns remain well and sound in Euroland as we get closer to the EU parliamentary elections: snap elections in Spain on April 28, the still unresolved issue of the ‘yellow vests’ in France and the omnipresent effervescence in the Italian political scenario, all appear to be lending support to the idea of swelling populism in the Old Continent.
EUR/USD levels to watch
At the moment, the pair is losing 0.21% at 1.1271 and a break below 1.1248 (2019 low Feb.14) would target 1.1215 (2018 low Nov.12) en route to 1.1118 (monthly low Jun.20 2017). On the flip side, the next up barrier emerges at 1.1294 (100-hour SMA) seconded by 1.1332 (200-week SMA) and finally 1.1341 (high Feb.13).
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 regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.