EUR/USD stays firm and advances to 1.0940, US data in sight

  • EUR/USD extends the recovery to 1.0940 on Thursday.
  • German Consumer Climate deteriorated markedly in April.
  • US Q4 GDP, Trade Balance, Claims next on the calendar.

EUR/USD is extending the weekly recovery to levels well above the 1.0900 mark in the second half of the week.

EUR/USD remains bid on USD-weakness

EUR/USD is prolonging the upside momentum for the fifth consecutive session on Thursday, always against the backdrop of the persistent selling pressure around the greenback. On the latter, it is worth mentioning that the US Dollar Index (DXY) is already shedding around 2.5% from recent tops near the 103.00 mark to the current 100.40 region.

The pair has regained momentum after the US Senate approved (96-0) a historic $2 trillion aid package to fight the fallout of the coronavirus in the US economy. The bill is now moving to the House of Representative to be voted on Friday. This stimulus package adds to Monday’s extra stimulus delivered by the Federal Reserve in the form of open-ended purchases of Treasuries and MBS, among other measures.

Data wise in Euroland, the German Consumer Climate tracked by GfK deteriorated sharply for the month pf April, falling to 2.7 from March’s 8.3 (revised from 9.8).

Still in the docket and later in the NA session, all the attention will be on the weekly release of Initial Claims, relegating advanced Trade Balance results and another estimate of the Q4 GDP to a secondary role.

What to look for around EUR

EUR/USD keeps the ‘recovery-mode’ well in place in the second half of the week, always following USD-dynamics, developments from the coronavirus and the response from overseas central banks and governments. On the latter, the Fed’s latest round of stimulus plus the US $2 trillion coronavirus aid package have been collaborating further with the rebound in the pair via a weaker dollar. On the macro view, better-than-forecasted PMIs in both Germany and the broader Euroland opened the door to some respite in the prevailing downtrend in fundamentals in the region, although the underlying stance still remains well on the negative side.

EUR/USD levels to watch

At the moment, the pair is gaining 0.52% at 1.0940 and a breakout of 1.0992 (monthly low Jan.29) would target 1.1008 (55-day SMA) en route to 1.1082 (200-day SMA). On the downside, the next support lines up at 1.0814 (78.6% Fibo of the 2017-2018 rally) followed by 1.0635 (2020 low Mar.23) and finally 1.0569 (monthly low Apr.10 2017).

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

AUD/USD holds onto recovery gains above 0.6050, RBA eyed

AUD/USD stays within the two-hour-old 0.6080-6100 range, currently around 0.6090, while stepping forward for Tuesday’s Asian session. In doing so, the pair holds onto Monday’s recovery gains, mainly due to slightly positive coronavirus (COVID-19) data from Europe, ahead of the key RBA meeting.


USD/JPY: Mildly bid above 109 amid mixed sentiment

Having benefited from the recovery in virus data from global hot-spot, while marking a three-day winning streak on Monday, USD/JPY buyers seem to catch a breath around 109.25 amid the early Asian session on Tuesday.


Gold: Refreshes four-week high, $1,685 on bulls’ radar

Gold prices remain on the front foot while taking the bids near $1,668, up 0.70%, amid the Asian session on Tuesday. In doing so, the bullion refreshes the four-week high with an intraday peak of $1,674.15 while also marking a fifth consecutive daily gain.

Gold News

WTI snaps three-day winning streak

WTI oil fell by over 8% on Monday, ending a three-day winning streak, which saw prices rise from $19.94 to $29.11. The black gold fell as Saudi Arabia and Russia's decision to delay an emergency meeting to discuss output cuts shifted focus back to oversupply concerns.

Oil News

Johnson Hospitalised, Oil Awaits Treatment

Sterling slipped after UK Prime Minister Boris Johnson was moved to the intensive care unit for coronavirus treatment, but the broad risk trade remained strong on optimism with slowing growth in the number of Corona virus cases. 

Read more