EUR/USD stays firm near the 1.1500 handle on US data

  • The pair keeps the bid tone intact in the 1.1500 area.
  • The greenback is unable to shrug off Fed-led weakness.
  • US Initial Claims shoot to 253K WoW.

The bid tone around the shared currency remains intact on Thursday, with EUR/USD managing to keep daily gains and business around 1.1500 the figure.

EUR/USD gains capped by Fibo retracement

The pair is trading in the positive territory since last Friday, managing to gain around 2 cents since the ECB-sponsored sell-off sent it to fresh 2019 lows in the 1.1290/85 band.

The upbeat sentiment around spot has been reinforced in past hours in response to the dovish tone from the FOMC, which now sees the Federal Reserve shifting to a neutral stance and more data-dependent.

In addition, news of a potential meeting between Trump and Xi Jinping in February has been also fuelling speculations over a probable trade deal and is also keeping the buck under pressure.

In the data space, EMU’s flash Q4 GDP figures came in at 0.2% QoQ and 1.2% YoY, in line with prior surveys. Across the pond, Initial Claims jumped 253K WoW although largely due to the US shutdown. Further US data saw the Employment Cost Index (ECI) at 0.7% in Q4, a tad below estimates.

What to look for around EUR/USD

USD-dynamics will drive the sentiment in the pair in the very near term, showing some upside potential in response to the now neutral stance from the Federal Reserve. However, fundamentals in the euro region are not something to write home about and this carries the potential to weigh on the single currency in the next months. Politics in Euroland will also be a factor to have in mind, with EU parliamentary elections coming up in May and investors closely following the social scenario in France and populist developments in Italy.

EUR/USD levels to watch

At the moment, the pair is gaining 0.19% at 1.1491 facing the next up barrier at 1.1514 (high Jan.31) seconded by 1.1515 (50% Fibo of the September-November drop) and finally 1.1569 (2019 high Jan.9). On the flip side, a breakdown of 1.1446 (100-day SMA) would target 1.1388 (55-day SMA) en route to 1.1323 (200-week 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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD surges above 1.1100 as Trump announces steps against China

EUR/USD is trading above 1.1100, up on the day. President Trump said he orders companies to search Chinese imports for drugs. Earlier he criticized Powell's lack of action. 


GBP/USD jumps above 1.2250 on USD weakness

GBP/USD is trading close to the monthly highs above 1.2250 as the US dollar falls following Powell's hint of cutting rates and Trump's angry response. 


USD/JPY plummets to ten-day lows below 106 as Trump goes berserk on Twitter

The USD/JPY came under strong selling pressure in the last hour and erased nearly 100 pips as US President Donald Trump's latest rant on Twitter forced investors to seek refuge and ramped up the demand for safe-haven JPY. 


Gold gains more than $30, eyes 2019 highs on Trump’s tweet

Gold continues to rise sharply amid concerns about the impact of the escalation in the US-China trade war. The demand for safe-haven assets emerged over the last hours, leading to a rally in the yellow metal. 

Gold News

Powell powerless against Trump's trade wars – US braces for recession, USD set to move

"The most powerful central banker in the world" – is how we and others characterize Fed Chair Jerome Powell. While that may be true – monetary policy is reaching its limits – especially in the face of a trade war.

Read more