EUR/USD: Steady above 1.1300 ahead of US data, Fed’s Powell

  • EUR/USD consolidates recent gains around two-week top, sidelined of late.
  • USD tracks firmer yields as Powell pushes for faster tapering, Omicron anxiety looms.
  • Eurozone inflation refreshes record top, ECB policymakers cite growth concerns to defend easy money policies.
  • US ADP Employment Change, ISM PMI and Powell testimony 2.0 will be important, German Retail Sales may gain attention too.

EUR/USD defends 1.1300, taking rounds to 1.1325-30 amid sluggish markets ahead of Wednesday’s European session.

The major currency pair seeks clear direction as Fed Chair Powell recalled bond bears but the looming concerns over South African covid variant and vaccine news test declines ahead of the key US data/events.

In his testimony before the Senate Banking Committee, Fed’s Powell said, “It is time to retire the term ‘transitory’ for inflation." The Fed boss also suggested the risk of more persistent inflation and signaled favor for discussing faster taper in the December meeting. His comments triggered the US Treasury yields’ bounce off two-month low, currently up by four basis points (bps) around 1.48%.

It should, however, be noted that the mixed concerns over the Omicron vaccines’ capacity to tame the expectedly lethal virus variant, raised by representatives of drug giants like Moderna, Pfizer and Oxford, test the risk-off mood. On the same line was the news suggesting the US Food and Drug Administration’s (FDA) emergency use authorization of an antiviral pill from Merck and Ridgeback Biotherapeutics.

Additionally, cautious optimism in China and Australia add to the market’s warmer welcome of December, which in turn challenges the US Dollar Index (DXY) bulls and restricts EUR/USD declines.

Elsewhere, the European Central Bank (ECB) officials did cite the challenges the coronavirus resurgence offer to the bloc’s economy, which in turn requires extended easy money policies even if supply constraints may favor reflation woes for a while. That being said, Eurozone Consumer Price Index (CPI) tracked its German counterpart to refresh all-time high with a 4.6% figure.

Amid indecisive markets, EUR/USD traders may follow German Retail Sales for October, expected -2.0% versus -0.9% prior, for fresh impulse. However, major attention will be given to the second round of Fed Chair Powell’s testimony, US ISM Manufacturing PMI and ADP Employment Change. Above all, developments surrounding Omicron are the key of late.

Technical analysis

Failures to cross 20-DMA, around 1.1375, join the pair’s sustained trading below monthly resistance line, near 1.1430, to keep EUR/USD sellers hopeful of refreshing yearly low beneath 1.1200

Additional important levels

Today last price 1.1332
Today Daily Change -0.0010
Today Daily Change % -0.09%
Today daily open 1.1342
Daily SMA20 1.139
Daily SMA50 1.1525
Daily SMA100 1.1659
Daily SMA200 1.1829
Previous Daily High 1.1383
Previous Daily Low 1.1235
Previous Weekly High 1.1324
Previous Weekly Low 1.1186
Previous Monthly High 1.1616
Previous Monthly Low 1.1186
Daily Fibonacci 38.2% 1.1326
Daily Fibonacci 61.8% 1.1292
Daily Pivot Point S1 1.1257
Daily Pivot Point S2 1.1172
Daily Pivot Point S3 1.1109
Daily Pivot Point R1 1.1405
Daily Pivot Point R2 1.1468
Daily Pivot Point R3 1.1553



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD struggles to rebound, holds near 1.1150 after US data

EUR/USD trades around 1.1150 in the early American session on Friday as investors assess the latest inflation data from the US. According to the US Bureau of Economic Analysis, Core PCE Price Index rose to 4.9% on a yearly basis in December from 4.7% in November, surpassing the market expectation of 4.8%. 


GBP/USD clings to small gains above 1.3400 on mixed US data

GBP/USD posts modest daily gains slightly above 1.3400 on Friday as the dollar rally loses steam. The data from the US showed that the core PCE inflation edged higher to 4.9% in December. On a negative note, Personal Spending contracted by 0.6% on a monthly basis.


Gold recovers modestly after US data, stays below $1,800

Gold managed to stage a rebound from the multi-week low it set below $1,780 but continues to trade deep in the red near $1,790. The benchmark 10-year US Treasury bond yield is rising more than 1% on the day after US data, limiting XAU/USD's recovery.

Gold News

Bitcoin Weekly Forecast: Federal Reserve cannot tame BTC’s uptrend

Bitcoin has experienced some significant losses over the past few weeks, with a more dramatic drop occurring this week after the Fed's decision was announced. As losses have extended and BTC has entered into the $30,000 zone, concerns regarding Bitcoin being in a bear market have increased.

Read more

Apple share price set to rise after another record quarter

With the Nasdaq closing at its lowest level in seven months yesterday, the Apple share price has also found itself on the end of the recent weakness in tech shares, down over 12% from its record highs in early January.

Read more