EUR/USD trims losses, looks to regain 1.0900 post-IFO


  • EUR/USD trims losses and approaches the 1.09 mark.
  • German Business Climate improves to 79.5 in May.
  • US markets are closed due to the Memorial Day holiday.

Following a drop to daily lows in the 1.0870 region, EUR/USD met some fresh buying interest and is now attempting to reclaim the 1.09 neighbourhood.

EUR/USD bid post-data

EUR/USD has managed to cut earlier losses to the 1.0870 region after the German IFO survey came in on the positive note for the month of May. Indeed, German Business Climate bettered to 79.5 for the current month and Business Expectations improved to 80.1. On the weak side, Current Assessment came in at 78.9, missing forecasts and lower than April’s 79.4.

In the meantime, the pair keeps looking to USD-dynamics for very-near-term direction, with the US-China-Hong Kong conflict relegating the developments from the coronavirus as the main driver of the global price action.

Later in the week, the ECB’s C.Lagarde will speak (Wednesday) seconded by EMU’s Consumer Confidence and advanced inflation figures in the euro area. Across the pond, Consumer Confidence by the Conference Board is next on tap on Tuesday, the Fed’s Beige Book on Wednesday, Claims and Durable Goods Orders on Thursday, PCE and the final U-Mich gauge on Friday.

What to look for around EUR

EUR/USD came under renewed selling interest after failed to surpass the key 1.1000 mark last week. In addition, the sentiment around the greenback improved on the back of the resumption of US-China trade jitters, all putting the pair under extra pressure. The recent better-than-expected results in Germany and the broader euro area along with positive prospects regarding the re-opening of some economies in the bloc appear to keep occasional bearish attempts contained, all helped by the solid position of the euro area’s current account. In the political scenario, the recent German court ruling against purchases of sovereign debt under the ECB’s QE programme threatens to widen the existing cracks within the euro area and could limit any serious recovery in the currency. This view has been also exacerbated after the French-German proposed fund to help economies to recover from the coronavirus fallout met resistance among some Northern-European members.

EUR/USD levels to watch

At the moment, the pair is losing 0.04% at 1.0893 and faces immediate contention at 1.0870 (low May 25) seconded by 1.0774 (weekly low May 14) and finally 1.0727 (monthly low Apr.24). On the upside, a breakout of 1.0999 (weekly high May 20) would target 1.1011 (200-day SMA) en route to 1.1019 (monthly high May 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. 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 holds gains above 1.13 on mixed US COVID-19 stats

EUR/USD holds the higher ground above 1.13 as US stocks rise and the safe-haven dollar retreats. Investors are shrugging off EU disagreements amid mixed US coronavirus stats. 

EUR/USD News

Gold consolidates above $1800, holds onto gains looking at $1825

The yellow metal rose further and reached the highest level since 2011 at $1818/oz after the beginning of the American session. It then moved off highs, finding support at $1808.

Gold News

GBP/USD edges up amid Sunak's fiscal stimulus, shrugging off Brexit

GBP/USD is trading above 1.2550, shrugging off Germany's Merkel comments that Brexit talks made little progress and may end with no deal. UK Chancellor Sunak presented fiscal plans including a retention bonus for firms that re-hire workers. 

GBP/USD News

Altcoin season rocks on under the radar

The Altcoin segment is boiling hot, laying the foundations for a massive bull market. Despite the apparent calm on the surface, Cardano, Chainlink or Ripple knock hard on the heavens' door. The war for dominance distracts Bitcoin and Ethereum, focused on the power play.

Read more

WTI on the move to fresh session highs, testing $41 the figure

We are now over 1% higher on the day despite the crude oil inventories in the United States swelling by 5.7 million barrels in the week to July 3, information that was provided by the Energy Information Administration. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures