- The pair’s upside momentum stays unchanged above 1.1300.
- DXY remains under pressure still below 97.00.
- US Empire State index next of relevance in the docket.
The firm note stays unchanged around the European currency at the beginning of the week, with EUR/USD challenging 3-week highs in the vicinity of 1.1320.
EUR/USD propped up by sentiment, looks to US data
The pair is now extending the upside momentum for the second week in a row on the back of the generalized buoyant sentiment in the risk-associated complex and speculations of a potential US-China trade deal.
Hopes of a US-China trade deal have re-surfaced today following positive comments by US Secretary S.Mnuchin over the weekend, stressing that both parties made significant progress in past weeks and that an agreement looks closer.
In addition, investors keep looking to the US and German money markets, as the spread yields between both 10-year reference have been a key driver in the last weeks.
Later in the NA session, the regional manufacturing gauge by the Empire State index is next of relevance across the pond along with TIC Flows and the speech by Chicago fed C.Evans (voter, hawkish).
What to look for around EUR
Positive sentiment in the risk-associated complex continues to support the shared currency amidst a persistent down move in the greenback. The ECB reiterated the risks to the economic outlook in the region remain tilted to the downside, a view reinforced by generalized poor results in fundamentals in past weeks. That said, the ‘patient-for-longer’ stance from the ECB could be among us for longer than expected. Against this backdrop, the neutral stance from the Fed and occasional deterioration in the risk-on mood should lend support to the buck and thus limit the upside in spot. On the political front, headwinds are expected to emerge in light of the upcoming EU parliamentary elections and the swelling presence of the populist movement among the voting countries.
EUR/USD levels to watch
At the moment, the pair is gaining 0.09% at 1.1308 and a breakout of 1.1338 (200-week SMA) would target 1.1345 (100-day SMA) en route to 1.1419 (high Feb.14). On the downside, immediate support emerges at 1.1275 (21-day SMA) seconded by 1.1183 (low Apr.2) and finally 1.1176 (low Mar.7).
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 stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.
EUR/USD mired near 1.0730 after choppy Thursday market session
EUR/USD whipsawed somewhat on Thursday, and the pair is heading into Friday's early session near 1.0730 after a back-and-forth session and complicated US data that vexed rate cut hopes.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Ethereum could remain inside key range as Consensys sues SEC over ETH security status
Ethereum appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the US SEC and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.