EUR/USD stays bid just below 1.2000

Pablo Piovano FXStreet

The sentiment around the single currency stays bid so far today, with EUR/USD gravitating around the 1.1990/80 band ahead of the NA session.

EUR/USD focus on US data

Spot stays on recovery-mode so far today, looking to regain ground lost following Monday’s strong pullback to the mid-1.1900s.

The renewed selling bias around the buck and the lack of traction in US yields remain as the exclusive catalysts of the recent price action in the pair, while speculations on the potential steps of the ECB in the next months seem have taken a breather.

Anyway, investors keep considering occasional dips in the pair as buying opportunities, all against the backdrop of a constructive outlook as long as the pair trades above the 5-month support line, today around 1.1780.

Data wise today, EMU’s industrial production expanded 0.1% inter-month in July and 3.2% over the last twelve months. Across the pond, August’s producer prices are due seconded by the usual EIA report on US crude oil supplies.

EUR/USD levels to watch

At the moment, the pair is gaining 0.18% at 1.1987 and a break above 1.2041 (high Sep.11) would target 1.2092 (2017 high Sep.6) en route to 1.2167 (50% Fibo of the 2014-2017 drop). On the downside, the immediate support lines up around 1.1946 (10-day sma) seconded by 1.1888 (21-day sma) and then 1.1823 (low Aug.31).

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 sticks to neutral bias above 0.7100 amid bullish USD undertone

AUD/USD holds steady above 0.7100 during the Asian session on Monday as the US Dollar stalls its modest pullback from the highest level since late July amid persistent geopolitical uncertainties. Adding to this, the Fed's hawkish outlook supports the buck. However, bets on another RBA rate hike underpin the Aussie ahead of Governor Bullock's speech and Australian jobs data on Tuesday and Thursday, respectively.

USD/JPY steadies around 157.00 as BoJ's dovish rate hike undermines JPY

USD/JPY edges up at the start of a new week, stalling its retracement slide from 158.00, or a two-week top touched in reaction to the BoJ's dovish rate hike on Friday. Escalating tensions in the Middle East, along with bets for another Fed rate hike this year, lend some support to the US Dollar and the currency pair. Bulls, however, seem hesitant and await further geopolitical developments.

Gold remains depressed below $4,400 as Fed hike bets and Mideast jitters support USD

Gold struggles to capitalize on its recovery gains registered over the past two days and attracts fresh sellers at the start of a new week. The risk of a broader Middle East conflict helps the safe-haven US Dollar stall Friday's retracement slide from the highest level since late July. Moreover, the Fed's hawkish outlook supports the buck and keeps the non-yielding bullion depressed below $4,400.

The week ahead: Hawkish Fed sets the tone for flash PMIs, SNB decides on policy

The US dollar outperformed all its major peers this week, putting it on the front foot in anticipation of a hawkish Fed before Wednesday, and accelerating its advance after the central bank satisfied the hawkish market bets.

CFTC Report: Positioning turns more defensive as Yen longs build

The week in one sentence: Yen positioning surged into a sizeable net long in the week to September 15, while Oil buying accompanied a sharp price increase. CAD shorts also retreated, but Gold exposure remained crowded despite a lower price. Euro and Australian Dollar positioning weakened alongside softer currencies.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.