EUR/USD stuck in a range, around mid-1.2400s ahead of Draghi’s speech

Haresh Menghani FXStreet

• Surrenders upbeat EZ PMI led early gains.
• Reviving USD demand seemed to cap up-move.
• US ISM PMI and Draghi eyed for fresh impetus.

The EUR/USD pair struggled to build on early up-move and has now retreated around 25-30 pips from session tops.

The pair did attempt to build on its post-NFP rebound from the 1.2400 neighborhood and was being supported by a modest US Dollar retracement. This coupled with today's better-than-expected final EZ PMI prints lifted the pair to an intraday high level of 1.2475.

The up-move quickly ran out of steam amid reviving USD demand, despite a sharp retracement in the US Treasury bond yields. Traders also seemed to refrain from placing aggressive bets and preferred to wait on the sideline ahead of the ECB President Mario Draghi's testimony.

Valeria Bednarik, American Chief Analyst at FXStreet notes: “ECB's President Draghi is due to testify on the ECB's Annual Report before the European Parliament, and investors will be looking for clues on upcoming ECB's decision on monetary policy.”

Currently hovering around mid-1.2400s, the US ISM non-manufacturing PMI for January might also help traders grab some short-term trading opportunities ahead of today's key event risk.

Technical outlook

Valeria further writes: “The pair presents a neutral-to-positive stance in the short term, as in the 4 hours chart, the pair is hovering around a modestly bullish 20 SMA, but holding above the 1.2390 level, the 23.6% retracement of its January rally. In the same chart, technical indicators have bounced from their mid-lines, maintaining upward slopes although below their previous highs. the 1.2480 level is the immediate resistance, ahead of the multi-year high set last January at 1.2536. Beyond this last 1.2570 comes next. To the downside, 1.2425 the daily low is the immediate support, ahead of the mentioned Fibonacci level at 1.2390.”

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD holds near Feb. 11 highs as bulls await breakout above 1.3660

The GBP/USD pair trades with a positive bias around mid-1.3600s at the start of a new week and remains well within striking distance of its highest level since February 11, touched on Friday. Moreover, the fundamental backdrop favors bullish traders and backs the case for an extension of a nearly one-month-old uptrend.

EUR/USD holds steady amid US debt strategy

EUR/USD remains stronger for the fourth successive trading day, hovering around 1.1680 during the Asian hours. The currency pair holds its ground as the US Dollar struggles under pressure from newly announced United States fiscal moves. The Treasury Department surprised financial markets by pledging to at least double its buybacks of longer-dated government debt in an attempt to rein in rising bond yields.

Gold keeps rallying toward $4,700, fresh three-month highs

Gold extends its last week's stellar performance into Asian trading on Monday, refreshing three-month highs beyond $4,600. The precious metal capitalizes on persistent US Dollar weakness, following the US Treasury's buyback plan amid fresh US-Canada trade tensions.

Here's what I learned trading meme coins

I’ve been trading cryptocurrencies for the past seven years, with meme coins becoming one of the most exciting and implacable parts of my experience. I love them because they represent internet culture and community sentiment, and, let’s be honest, extreme speculation. Newly launched meme coins were especially tempting: get in early enough, I thought, and a small bet could turn into a huge return.

The week ahead: Jackson Hole and Nvidia results to take focus away from Trump

We start the week with the focus squarely on the US. Rising Treasury yields, the Jackson Hole Symposium, inflation and GDP data, along with tariff risks, will dominate market action in the coming days.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.