EUR/USD testing highs near 1.1250 on offered USD


  • Spot gains traction and advances to the mid-1.1200s.
  • DXY remains offered in the 97.35/30 band ahead of housing data.
  • German IFO survey next of relevance on Wednesday.

The buying interest around the European currency remains intact at the beginning of the week and is now lifting EUR/USD to the area of fresh tops around 1.1250.

EUR/USD met support near 1.1220

Spot has managed to so far leave behind last week’s miserable prints from advanced manufacturing PMIs in core Euroland for the current month, bouncing off lows in the vicinity of the 1.1220 region seen last Thursday.

A renewed selling bias is hovering around the greenback today, prompting the US Dollar Index to give away part of last week’s gains to the 97.40/50 band amidst some consolidative mood in both US yields and their spread vs. the German Bunds.

Data wise in the euro area, the key German IFO survey is due on Wednesday, with investors looking forward to see whether the ongoing slowdown in the region, and particularly in Germany, has lost – or accelerated – momentum.

What to look for around EUR

The broad-based risk-appetite trends are posed to rule the sentiment surrounding the European currency for the time being, while the onoging US-China trade dispute and potential deal expected to remain in centre stage in the next weeks. Recent weak results from key fundamentals in the region plus a now unlikely rebound in the activity in the second half of the year have added to the ongoing concerns that the slowdown in the region could last longer that expected and the ECB is therefore likely to remain ‘neutral/dovish’ for the foreseeable future (say until mid-2020?). 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 up 0.09% at 1.1250 and a breakout of 1.1323 (high Apr.17) would target 1.1338 (200-week SMA) en route to 1.1341 (100-day SMA). On the flip side, initial contention emerges at 1.1226 (low Apr.18) seconded by 1.1183 (low Apr.2) and finally 1.1176 (low Mar.7).

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: risk-off taking over on trade war escalation

The American Dollar sold off Friday, following US President Trump´s anger discharge on Twitter. The pair soared to 1.1152, its highest for the week, to finally settle at around 1.1140.

EUR/USD News

GBP/USD: Johnson and Tusk engaged in the blame-game

The GBP/USD pair flirted with the 1.2300 figure late Friday, ending the week with substantial gains around 1.2280, backed by Brexit hopes and the dollar’s broad weakness.

GBP/USD News

USD/JPY: lower lows at sight on the run to safety

The USD/JPY pair sunk Friday, following US President Trump’s fury with China and Fed’s head Powell, as the market rushed into safety. US yield curve inverted again, fears of recession rule.

USD/JPY News

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

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •