EUR/USD trims gains on US data, near 1.1140


  • EUR/USD faded earlier gains and returned to the 1.1140/35 band.
  • The Greenback moves higher and tests 98.00 gauged by the DXY.
  • US Retail Sales expanded 0.7% MoM in July.

EUR/USD saw its upside quickly reversed and it has returned to the 1.1140/35 band in the wake of auspicious US data releases.

EUR/USD upside capped around 1.1160

The shared currency has quickly given away earlier gains vs. the buck to the 1.1160 region in response to the better-than-expected results from today’s US calendar.

In fact, US headline Retail Sales surprised to the upside in July, expanding at a monthly 0.7%. Core sales too came in above estimates, up 1.0% inter-month. Additionally, the always key Philly Fed manufacturing index came in at 16.8 for the current month, surpassing forecasts albeit below July’s reading, and the NY Empire State index moved higher to 4.80 in the same period, bettering both consensus and previous print. Furthermore, Initial Claims rose at a weekly 220K, taking the 4-Week Average to 213.75K from 212.75K.

Positive results in the US docket also motivated US 10-year yields to rebound, lending extra support to the buck via a stronger USD/JPY.

Later in the session, further US publications will see Industrial Production figures, Manufacturing Production, Business Inventories, the NAHB index and TIC Flows.

What to look for around EUR

The reluctance of EUR to edge lower in the current risk-off environment could be reflected in ‘repatriation’ forces currently at play as well as the potential funding stance of the currency. Italian politics has resurfaced as a source of uncertainty as of late and is expected to weigh on the sentiment sooner rather than later. Sustained bullish attempts in the pair still look flimsy amidst ECB’s preparations for a fresh wave of monetary stimulus (most likely to be announced in September), including a potential reduction of interest rates, the re-start of the QE programme and a probable tiered deposit rate system. In the meantime, the unremitting deterioration of the economic outlook in the region and the lack of traction in inflation are seen capping extra gains and are also lending extra support to the dovish stance of the ECB.

EUR/USD levels to watch

At the moment, the pair is up 0.05% at 1.1144 and a breakout of 1.1165 (21-day SMA) would target 1.1232 (55-day SMA) en route to 1.1282 (high Jul.19). On the flip side, immediate contention emerges at 1.1130 (low Aug.15) seconded by 1.1101 (monthly low Jul.25) and finally 1.1026 (2019 low Aug.1).

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

GBP/USD off 7-month highs, still firmer as Tories hold the lead

GBP/USD retraces from the new seven-month highs of 1.3180 but remains strongly bid, as weekend polls have reaffirmed a solid lead for PM Johnson's Conservatives. Cable dropped on Friday amid upbeat US data.

GBP/USD News

EUR/USD steadying above 1.1050 amid upbeat German export data

EUR/USD is trading above 1.1050, attempting a recovery after Germany reported an increase in exports in October. EUR/USD dropped sharply on Friday amid upbeat US Non-Farm Payrolls and weak German industrial output. 

EUR/USD News

Cryptos: Market ready to launch, not knowing who will lead it

The market hesitates between Bitcoin and Ethereum to lead the next bullish run. Ethereum will suffer heavy losses if not in command. Bullish clarity may call for terminal motivation bearish jerks.

Read more

Gold bulls hold in there on geopolitical and trade risks, despite robust USD

Gold prices were under pressure at the start of the week as the US dollar seeks correction of the latest slide following a very healthy headline accumulative number in US jobs creation which included strong revisions.

Gold News

USD/JPY: Bears losing their grip as market attempts to bottom

USD/JPY is trading on the bid in the US session following a rise from 108.42 the low to a high of 108.66.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures