- EUR/USD alternates gains with losses around 1.1330.
- German Economic Sentiment improves to 63.4 in June.
- Fed’s J.Powell, Retail Sales next of relevance event-wise.
The prevailing side-lined theme in the global markets is motivating EUR/USD to extend the consolidative mood above the 1.1300 mark at the time of writing.
EUR/USD focused on data, Powell
EUR/USD is wobbling in the low-1.1300s on turnaround Tuesday, looking to add to Monday’s strong gains although losing some upside impetus in the 1.1350 region so far.
In fact, the pair regained buying interest at the beginning of the week in response to a wave of selling pressure around the buck, particularly after the Federal Reserve announced extra purchases under its Secondary Market Corporate Credit Facility (SMCCF).
Moving forward, the greenback is expected to be under scrutiny later in the session in light of the release of May’s Retail Sales, Industrial/Manufacturing Production and the testimony by Chief J.Powell before the Senate Banking Committee, as part of the Semi-annual Monetary Policy Report to the Congress.
Earlier in the session, the German Economic Sentiment came in above estimates this month, rebounding to 63.4 (from 51.0). In the broader Euroland, the Economic Sentiment also improved more than forecasted at 58.6 (from 46.0).
What to look for around EUR
EUR/USD has opened the week on a strong note after the Fed announced another round of fresh monetary stimulus, undermining the insofar positive momentum around the dollar. The constructive view in the euro, however, remains well sustained by the gradual and relentless re-opening of economies in Europe and by the ongoing monetary stimulus announced by the ECB, Germany and the European Commission. On top, the solid performance of the region’s current account is also adding to the attractiveness of the shared currency.
EUR/USD levels to watch
At the moment, the pair is gaining 0.04% at 1.1327 and a breakout of 1.1422 (weekly/monthly high Jun.10) would target 1.1448 (50% Fibo of the 2017-2018 rally) en route to 1.1495 (2020 high Mar.9). On the other hand, the next support aligns at 1.1212 (weekly low Jun.12) seconded by 1.1186 (61.8% Fibo of the 2017-2018 rally) and finally 1.1024 (200-day SMA).
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 gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.