EUR/USD testing highs near 1.1220 post-German data

  • The pair keeps the bid tone intact above 1.1200.
  • US-China trade talks continue to drive sentiment.
  • German Factory Orders expanded 0.6% MoM in March.

The upbeat mood around the European currency stays unchanged so far this week and is now propping the move higher in EUR/USD to the 1.1220 region, or weekly highs.

EUR/USD looks to trade, data

The pair is up for the third consecutive session on Tuesday, backed by hopes of an eventual trade agreement between US and China despite the recent escalation in tensions following President Trump’s threats of imposing extra tariffs.

Global markets, and the risk-associated universe in particular, managed well to leave behind the pessimism that emerged at the beginning of the week in response to Trump’s comments over the weekend, motivating spot to extend the bounce off Friday’s lows near 1.1130.

In the data space, German Factory Orders expanded less than expected at a monthly 0.6% during March. Later in the session and across the pond, the IBD/TIPP index, JOLTs Job Openings and speeches by Fed’s Kaplan and Quarles should keep the attention on the buck.

What to look for around EUR

Recent data in Euroland and Germany allowed market participants to believe that some healing process could be under way in the region amidst the ongoing slowdown. However, this scenario needs confirmation in the next months, while the current ‘neutral/dovish’ stance from the ECB is expected to persist for the reminder of the year and probable H1 2020. The broad-based risk-appetite trends and USD-dynamics are posed to rule the sentiment surrounding the European currency for the time being, all in combination with the onoging US-China trade dispute and potential US tariffs on EU products. On the political front, headwinds are expected to emerge in light of the upcoming EU parliamentary elections in late May, as the populist option in the form of the far-right and the far-left movements appears to keep swelling among voting countries.

EUR/USD levels to watch

At the moment, the pair is gaining 0.15% at 1.1215 and a break above 1.1264 (high May 1) would target 1.1269 (55-day SMA) en route to 1.1323 (high Apr.17). On the other direction, the next support lines up at 1.1135 (low May 3) seconded by 1.1109 (2019 low Apr.26) and finally 1.0839 (monthly low May 11 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

Latest Forex News

Editors’ Picks

AUD/USD bears rest around three-month bottom to 0.6760 amid broad risk-off

AUD/USD remains in the 11-pip range between 0.6763 and 0.6752, currently declining to 0.6760, by the press time of early Asian session on Tuesday. Coronavirus weighs on the market’s risk tone, tension from the Middle East and the US data also play their roles.


USD/JPY: Bears lead on the run to safety

Coronavirus getting stronger, infections to continue to rise. Risk-off Monday, an empty macroeconomic calendar exacerbates sentiment trading. USD/JPY to accelerate its decline on a break below 108.65, a critical Fibonacci support level.


Crypto market: FOMO mode on, the late-comer's doubt

The crypto market opens the trading week by taking advantage of the momentum of the movement that started early Sunday morning. As if it were an established rhythm, this week it is time to go up after going down the previous one, and up again the previous one.

Read more

WTI: Bears going to town with the coronavirus, fresh lows of $52.18 printed

Oil priced are under pressure, extending a drop from just below the $66 handle at the start of his year to fresh lows at $52.18.

Oil News

GBP/USD trims early gains, trades in the red

The GBP/USD pair has retreated from its daily high of 1.3105 and now trades marginally lower daily basis near 1.3050, amid dollar’s strength, looming BOE and Brexit.