- A modest USD pullback helped regain some traction on Monday.
- Dismal Euro-zone data prompts some fresh selling at higher levels.
- Coeure's comments exert some additional pressure in the last hour.
Having touched an intraday high level of 1.1235, the EUR/USD pair met with some fresh supply and has now moved back within the striking distance of Friday's post-NFP swing low.
With investors looking past Friday's upbeat headline US NFP print, a modest US Dollar pullback - led by the US President Donald Trump's fresh criticism about the Fed's policy tightening, helped the pair to gain some positive traction at the start of a new trading week.
The shared currency, however, failed to capitalize on the move, rather started losing ground following the release of Euro-zone July Sentix investor confidence, which fell to -5.8 - the weakest level since November 2014 and highlighted that a German recession is looming.
Meanwhile, the latest leg of a downtick over the past hour or so followed the ECB Governing Council member Benoit Coeure's comments, saying that accommodative policy is needed "more than ever" and that they could restart the asset purchases program if needed.
However, absent relevant market moving economic releases from the US might help limit any further downside for the major, though a sustained breakthrough the 1.1200 handle now seems to open the room for an extension of the intraday depreciating move.
Moving ahead, the Fed Chair Jerome Powell's public appearance on Tuesday, followed by a two-day Congressional testimony on Wednesday and Thursday, along with this week's US consumer inflation figures will now play an important role in influencing the pair’s next leg of a directional move.
Technical levels to watch
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
AUD/USD holds positive ground above 0.6500 on weaker US Dollar
The AUD/USD pair extends recovery around 0.6525 during the early Asian session on Thursday. The Federal Reserve held its interest rates steady at 5.25–5.50% at its meeting on Wednesday, citing a “lack of further progress” in getting inflation back down to its 2% target.
EUR/USD jitters post-Fed with NFP Friday over the horizon
EUR/USD cycled familiar territory on Wednesday after the US Federal Reserve held rates as many investors had expected. However, market participants were hoping for further signs of impending rate cuts from the US central bank.
Gold prices skyrocketed as Powell’s words boosted the yellow metal
Gold prices rallied sharply above the $2,300 milestone on Wednesday after the Federal Reserve kept rates unchanged while announcing that it would diminish the pace of the balance sheet reduction.
Solana price dumps 21% on week as round three of FTX estate sale of SOL commences
Solana price is down almost 5% in the past 24 hours and over 20% in the last seven days. The dump comes as the broader crypto market contracts with Bitcoin price leading the pack as it slides below the $58,000 threshold to test the Bull Market Support Band Indicator.
The FOMC whipsaw and more Yen intervention in focus
Market participants clung to every word uttered by Chair Powell as risk assets whipped around in a frenetic fashion during the afternoon US trading session.