EUR/USD sticks to gains near mid-1.0600s after US economic data

The EUR/USD pair maintained its strong bid tone near multi-day tops, albeit has a muted reaction to upbeat US economic data.

The pair remained stuck around mid-1.0600s after data released from the US showed weekly jobless claims rose less-than-expected, coming in at 239K for the week ended Feb. 10 as compared to previous week's 234K. Meanwhile, the Philly Fed manufacturing index surpassed even the most optimistic estimates and spiked to 43.3 for February, sharply higher from January's 23.6.

Other data showed, housing starts coming in at 1.246 million annualize pace and building permits rose more-than-expected at an annualized rate of 1.285 million in January.

Yet another batch of upbeat US economic data points failed to provide any immediate respite for the US Dollar bulls. In fact, the key US Dollar Index had a muted reaction to the releases and held on to daily losses near session low around 100.60 region.

Earlier on Thursday, ECB minutes confirmed central bank's easing bias by showing its willingness to ignore temporary rise in the headline inflation and focus on core inflation. The minutes, however, did little to hinder the pair’s ongoing recovery move from over one month lows touched on Wednesday.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, “technically, the 4 hours chart shows that the price has broken above its 20 SMA that turned now flat and now acts as dynamic support around 1.0600, whilst technical indicators have entered bullish territory, maintaining their upward slopes. As long as above the 20 SMA, the risk is towards the upside, as the indicator has been leading the way lower for over a week.”

“An immediate static resistance stands at 1.0660, and further gains beyond the level should lead to an extension up to the 1.0700/20 price zone. 1.0590 on the other hand, is the immediate support, followed by the 1.0550/60 region, this last a probable daily bottom in case of dollar's gains and no shocking surprises coming from the White Office.”

Sell 59%
Buy 41%
Avg Sell Price 1.0669
Avg Buy Price 1.0674
Liquidity Distribution


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

Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.


GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.


XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News